Time to make a decision: Chancellor Jeremy Hunt
Scottish whiskey and gin makers have called on Jeremy Hunt to cut alcohol duty ahead of the spring budget.
They say the tax rate on spirits, the highest in Europe, is putting additional pressure on businesses as they struggle with higher costs.
This comes after measures taken in last year’s Spring Budget meant up to 80 per cent of the price of a bottle of spirit is taken as tax, including duties and VAT.
The companies say the tax burden on spirits is “unsustainably high.”
Producers fear that without a tax cut, venues will be forced to raise prices even higher for customers.
In a letter seen by the Mail, trade associations representing more than 400 drinks producers and hospitality venues have urged the Chancellor not to turn his back on iconic local products such as whiskey and gin.
The letter said: “A cut in alcohol taxes would not only help reverse this trend of depressed consumer spending, but would also generate revenue for the Treasury at a time when it is needed most.”
Last August, taxes on all alcohol increased, but under the Government’s “Brexit pub guarantee” relief was given to draft beer.
But spirits industry groups said this was unfair and disastrous as taxes on their drinks increased by more than 10 per cent.
Chris Jaume, owner of Cooper King Distillery in York and spokesperson for the UK Spirits Alliance, said: “It’s been a tough few years dealing with Covid, spiraling costs and a cost of living crisis, and we’ve now been hit hard by the rising of tariffs”. . “It’s actually an unfair tax on consumers who want to support their local distillery.”