𝓤𝓷𝓲𝓽𝓮𝓭 𝓝𝓮𝔀𝓼

Dry January is over but distillers fear the hike in duty on spirits which comes into force today will punish an industry already “on its knees”. Braden Saunders, co-founder of the Doghouse Distillery in London’s Battersea, warned Rachel Reeves’s Treasury of the crisis facing many businesses.

He said: “The spirits industry has been treated as a cash cow by consecutive governments, and the sector is on its knees. Spirits and cocktails are absolutely crucial to the bottom line for any venue.”

Greville Richards, director of Cornwall’s Saint Sithney Distiller, warned: “The Government says it wants to support pubs but it is simultaneously clobbering the very products that make them profitable. UK spirits face some of the highest excise duties in Europe – rates that put our distillers at a serious disadvantage both at home and abroad.”

Ms Reeves announced an increase of 3.66% in excise duty in her last Budget.

Joe Robertson, Conservative MP for the Isle of Wight East and a member of the all-party group on UK spirits, warned: “Today’s duty increase will be devastating for pubs, distillers and consumers alike. Distillers are the lifeblood of so many of our communities, providing jobs, driving innovation and generating opportunity. They should be given the confidence and stability that they need to grow, invest and take advantage of export opportunities overseas. Instead, the industry faces mounting pressures and the knock-on effect on pubs is huge.”

The UK Spirits Alliance has written to the Chancellor, calling on her to use the upcoming duty review to “focus on growth”.

Carolyn Harris, a Labour MP who chairs the all-party group, said: “Another duty hike on spirits will now hit people who simply want to enjoy a drink after a hard day’s work. Pub owners consistently tell me that spirits are among their most profitable products – so this tax rise compounds the difficulties they’re already facing.”

A HM Treasury spokesperson defended the duty rise, saying: “[We] need to rebuild the public services we all rely on. We’ve put record funding into our schools and NHS to give every child the best start in life and bring down waiting lists. “Alcohol duty plays an important role in ensuring public finances remain fair and strong and funds the public services people rely on every day.”