Exclusive: Distillers demand cut to spirits duty in March budget
A coalition of British distillers have written to Rishi Sunak to urge him to stick to his party’s election manifesto and cut spirits duty in this month’s budget.
The letter – drawn up by the UK Spirits Alliance and signed by 40 of its members – asks the chancellor to “reduce the excise duty burden” to give spirit producers “the stability and confidence we need to plan effectively for the coming years”.
It added: “Unlike many other alcohol categories, whose products are largely imported, our products are making greater contributions to the economy than ever before.
“[A reduction in excise duty] would allow us to build on the significant contributions we already make to the UK economy – and deliver further growth, investment and revenues to the Treasury.”
Alcohol duty rates in the UK vary from product-to-product, with spirits producers charged £28.74 per litre of pure alcohol.
Spirits duty has been frozen three times since 2014, leading to tax revenues from these products increasing by £734m – a 23 per cent rise.
However, Boris Johnson’s General Election manifesto pledged to cut the rate even further.
Among those calling for a reduction in the current rate of spirits duty is Mason’s Yorkshire Gin, which is located in Sunak’s Richmond (Yorkshire) constituency.
Mason’s founder Karl Mason said: “Mr Sunak recently visited our distillery and was keen to hear how we managed to rebuild our business after a devastating fire destroyed the old distillery last year.
“To allow us to further invest and grow, we urge the new chancellor to cut our excessively high duty rates at the budget.”
Tory backbencher Tim Louhgton also joined in the call to slash spirits duty.
“The government’s support for spirits in recent years has been good news for small businesses like Slake Spirits in my constituency,” he said.
“Good news for the 446,000 people now employed in the industry and good news for anyone who enjoys a well-earned gin.”