Freeze alcohol duty in Budget, Reeves urged

Rachel Reeves has been urged to freeze alcohol duty in her upcoming Budget.

An open letter from the Scotch Whisky Association (SWA), UK Spirits Alliance, Welsh Whisky Association, English Whisky Guild and Drinks Ireland has pushed the Chancellor not to increase the rate of excise duty on alcohol until the end of the current Parliament.

The letter – signed by the bosses of the bodies – said the current regime was “unfair” and has put a “strain” on members after a 14% increase in the past two years, while the total tax take for the levy fell.

“The businesses we represent are struggling – with some halting investment and even production in the UK, or looking elsewhere to invest; and others are being forced to reduce headcounts,” the letter said.

“For some of this country’s most iconic products, this is deeply worrying.”

It added: “That is why we are calling on you to announce a multi-year freeze for spirits, spanning the lifetime of this parliament; and to ensure there will be no further widening of the tax differential between spirits and other alcohol categories.

“The UK is a world-class distilling nation, and such a move to freeze excise duty would demonstrate this Government’s commitment to some of the UK’s most recognisable products – whether that be gin, Scotch whisky or others – and give our members the confidence to invest and help the government’s growth agenda.

“A duty freeze should not be seen as a handout, but an investment.

“Our members support jobs and growth throughout the UK – you have the chance to harness this potential, let’s grasp it and freeze duty.”

HM Treasury spokesperson said: “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.

“Whisky and gin exporters are some of the biggest winners from our recent India trade deal, cutting tariffs from 150% to 40% and boosting whisky exports by £1 billion.

“At the same time, we’re safeguarding public finances to ensure continued support for the NHS and other public services.”