Britain's pub landlords are raising the alarm over a deepening crisis among gin and whisky suppliers, with new figures revealing a sharp increase in business failures within the spirits supply chain.
Spirits Industry 'On Its Knees' as Supplier Failures Spike
More than a third (38%) of pub bosses reported that one of their spirit suppliers has gone bust in the last year, according to exclusive findings from Survation and the UK Spirits Alliance (UKSA). This marks a significant deterioration from the previous year, when 25% of landlords reported supplier closures.
The UK Spirits Alliance, representing over 300 distillers and hospitality businesses, has warned that the situation is becoming increasingly dire for the sector.
Budget Warning: Distillers Plead for Duty Freeze
Distillers are urgently calling on Chancellor Rachel Reeves to implement a complete freeze on excise duty in the upcoming Budget, scheduled for November 26. This appeal comes against a backdrop of successive duty increases that have placed enormous pressure on the industry.
The Conservative government previously implemented a substantial 10.1% duty hike in 2023, followed by Chancellor Reeves' additional 3.65% increase announced in last year's Budget.
Jordan Morris, Co-founder of Abingdon Distillery in Oxford, stated: "This is a clear signal to the Treasury – the spirits industry is on its knees and in vital need of support. A freeze is the first step to a fairer and more sustainable duty system that recognises the cultural and economic value distillers bring to the UK hospitality sector."
Industry Leaders Voice Concerns Over Government Support
Natalie Hall, Director at York Gin, highlighted what many in the industry see as unfair treatment compared to other alcohol producers: "By choosing to support only beer and cider makers while raising taxes on other products, the Government damaged our pubs and bars and isolated those consumers who choose to enjoy a cocktail, gin and tonic or spritz."
She added that "The Chancellor can back pubs, and the fantastic spirits makers that supply them, by reversing the damaging hikes with a complete freeze, which would have a huge impact on our industry and allow it to continue to innovate and drive economic growth."
The Treasury responded by highlighting existing support measures, with a spokesperson stating: "Our distilleries are vital to Britain's economy, so we're making it easier for them to thrive: no export duty, lower licensing fees, reduced tariffs, and a cap on corporation tax."
The spokesperson declined to comment on specific measures that might appear in the upcoming Budget.
This crisis comes as The Mirror continues its campaign to save Britain's pubs, many of which struggle to stay afloat amid rising costs and supply chain pressures.
