Trade groups warn Reeves over spirits duty hikes – Daily Business

Whisky distillers are concerned about rising taxes (pic: DB Media Services)

Eight spirits industry representative organisations have warned the Chancellor of the “devastating impact” of tax rises on the industry.

Their concern follows new data showing how revenue has fallen sharply following a 17% increase to spirits duty over the last three years. 

The duty hike cost the industry £94m in 2025/26 alone and revenue is £1.1bn lower than was forecast when the new alcohol duty system was introduced in 2023. 

The drinks organisations, which includes the Scotch Whisky Association and the Wine and Spirits Trade Association, have issued a statement to Rachel Reeves condemning what they call a super tax.

“It is critical that HM Treasury do not turn a blind eye to the role the punitive and distortive duty rate has had on spirits revenue, in addition to job losses and investment pauses across the spirits industry,” they say.

“Spirits duty amounts to a super tax on the industry and must be urgently addressed. Pubs and the wider hospitality industry cannot survive on beer alone, yet hard-pressed consumers are being forced to pay over the odds to responsibly enjoy premium spirits, which underpin the profitability of many bars, pubs and restaurants. 

“HM Treasury promised a review of the new alcohol duty system three years after its implementation. We welcome the launch of that evaluation, and our organisations are united in our call for the review to be as comprehensive as possible, and for the Autumn Budget to take steps to support the UK’s worldclass spirits industry.” 

Full list of signatories to the joint statement:

English Whisky Guild

Drinks Ireland: Spirits

The Gin Guild

Irish Whiskey Association

Scotch Whisky Association

UK Spirits Alliance

Welsh Whisky Association

Wine and Spirits Trade Association

2025/26 spirits revenue data, published by HMRC, can he found here

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