Budget increases alcohol duty, impacting UK spirits industry
A senior ally of Sir Keir Starmer has warned that the Budget is “punishing” bars as punters pay more for booze from today, reports BritPanorama.
Labour MP Carolyn Harris stated that the rise in alcohol duty is “hugely damaging” for Britain’s spirits industry. The tax on alcoholic drinks is increasing by 3.66 per cent today due to changes implemented by Chancellor Rachel Reeves. This new duty will raise the cost of a typical bottle of gin by 38p to £8.98 after VAT, with a bottle of Scotch whisky seeing a 39p increase and red wine costing an additional 14p.
Ms. Harris, chair of the APPG for UK Spirits, expressed concerns that distillers and the businesses they support are “being punished.” She highlighted that pub owners have consistently noted that spirits are among their most profitable products, suggesting that the tax hike compounds existing challenges for these establishments.
“Another duty hike on spirits will now hit people who simply want to enjoy a drink after a hard day’s work,” she stated. Additionally, Ms. Harris called on ministers to ensure a comprehensive review of upcoming duty changes that considers the pressures facing this struggling industry.
She emphasised, “Our spirits sector creates jobs, opportunity, and employment. We must let it thrive.” Her remarks followed announcements from Ms. Reeves regarding an £80 million financial lifeline aimed at pubs and music venues.
The Conservative Party has labelled the Budget’s measures, which would save pubs an average of £1,650, as merely a “sticking plaster.” A Treasury spokesperson underscored the importance of alcohol duty in maintaining fair public finances, emphasising its role in funding essential public services.
In light of these developments, the challenges faced by the spirits industry and publicans are underscored by their call for a more supportive fiscal environment as they navigate increasing costs and declining margins amid the broader economic landscape.
As the government readies for a review of excise duty later this year, the need for a thorough examination of these pressures becomes paramount to ensure the future resilience of the UK spirits industry.
