Skip to content
Search
AI Powered
Latest Stories

Distillers consider production cuts due to possible rise in spirits duty

Distillers consider production cuts due to possible rise in spirits duty

A good majority of UK distillers expect to reduce production due to a rise in spirits duty, a trade body has stated, calling for for a freeze on spirits tax ahead of Chancellor Jeremy Hunt’s autumn statement.

According to UK Spirits Alliance (UKSA) – which represents more than 280 small and independent distilleries across the country, 61 per cent of distillers expect to cut the amount of spirits they produce.


While 54 per cent of respondents have either not recovered or only partially recovered from the pandemic, 40 per cent of businesses reported a decrease in sales, shows the survey result.

There are fears that the government will increase alcohol duty again following the 10.1 per cent hike for spirits in August.

Looking ahead, 49 per cent warn that rising duty will have a major impact on consumer demand for their product.

A further 70 per cent of distillers fear their ability to invest in business improvements such as production capacity and innovation will be affected by the duty hike. Nearly half (43 per cent) of those surveyed said that the increasing tax rate will hit their staffing levels.

In its submission to the Treasury ahead of the autumn statement, the UKSA wrote: “The chancellor should ensure a fair approach across the industry, and freeze duty on all drinks enjoyed by consumers, rather than simply a beer and a cider pulled in a pub.

“The Brexit Pubs Guarantee not only does little to support pubs, bars and restaurants but also penalises adult customers who might prefer a gin and tonic, or a Spritz over a beer or a cider.”

More than 400 UK businesses have written to the chancellor asking for a duty freeze on alcohol in the autumn statement.

In an open letter, the Scotch Whisky Association (SWA), UK Spirits Alliance (UKSA), English Whisky Guild and Wine and Spirit Trade Association (WSTA) have warned Hunt that a further increase in alcohol duty will damage British businesses, including those in the hospitality sector.

The organisations represent more than 400 drinks producers across the country. The letter also details how the duty hike has impacted inflation, citing data from the Office for National Statistics (ONS) that suggests the increase caused the largest rise in UK inflation on record.

More for you

A woman walks past a window display promoting an ongoing sale

A woman walks past a window display promoting an ongoing sale, on December 13, 2024 in London, England.

Photo by Leon Neal/Getty Images

Retail sales disappoint before Christmas

UK retail sales rose less than expected in the runup to Christmas, according to official data Friday that deals a fresh blow to government hopes of growing the economy.

Separate figures revealed a temporary reprieve for prime minister Keir Starmer, however, as public borrowing fell sharply in November.

Keep ReadingShow less
Sybren Attema, and Betty Eekchaut

Presidents Sybren Attema, FrieslandCampina, and Betty Eekchaut, Milcobel

Yazoo parent FrieslandCampina announces merger with Belgian rival Milcobel

Dutch dairy collective FrieslandCampina has agreed to merge with smaller Belgian rival Milcobel, creating a leading dairy cooperative.

FrieslandCampina, whose brands include Yazoo and Chocomel, said the merger will provide the foundation for a future-oriented organisation that has dairy front and centre for member dairy farmers, employees, consumers, and customers.

Keep ReadingShow less
Retail Shoplifting. Man Stealing In Supermarket
Photo: iStock

Home Office reaffirms commitment to abolish £200 shoplifting threshold

The UK government has pledged stronger measures to combat anti-social behaviour and shoplifting, which it acknowledges as serious crimes that disrupt communities and harm businesses.

Addressing a House of Lords debate on Monday, Home Office minister Lord Hanson detailed plans to abolish the controversial £200 shoplifting threshold and to introduce a new offence for assaults on retail workers.

Keep ReadingShow less
post office store
Photo: Post Office Ltd

Post Office launches wellbeing hub to support postmasters amid rising retail crime

In response to the mounting pressures faced by postmasters across the UK, the Post Office has unveiled a centralised wellbeing platform aimed at simplifying access to support resources.

Post Office said the surge in shoplifting and violent incidents, documented in the 2024 ACS Crime Report, has only intensified the demand for comprehensive support.

Keep ReadingShow less
Independent retailers face mixed outlook for 2025 – Bira
iStock

Independent retailers face mixed outlook for 2025 – Bira

Independent retailers have weathered one of their most challenging years in 2024, with multiple headwinds affecting the sector, according to the British Independent Retailers Association (Bira).

With pressures mounting throughout the year, independent retailers have faced an increasingly difficult trading environment marked by changing consumer behaviour and economic uncertainties.

Keep ReadingShow less