The Gin Guild has expressed disappointment following confirmation in the UK 2026 Budget that alcohol duty will rise in line with the Retail Price Index (RPI) from 1 February 2027, placing further pressure on gin producers, businesses across the supply chain and consumers.

The increase represents another challenge for an industry already facing elevated production costs, continued pressure on household spending and uncertainty across the wider hospitality sector. For distillers, particularly smaller independent producers, further duty increases risk constraining investment, limiting growth and making it harder to remain competitive in an increasingly challenging market.

The Gin Guild believes that a sustainable spirits industry requires a balanced and evidence-led approach to taxation.

Repeated duty increases risk undermining the viability of businesses while making products less affordable for consumers.

The Guild is concerned that higher rates do not necessarily translate into increased Treasury receipts if they contribute to reduced sales, lower investment and business closures.

The announcement is particularly disappointing given the importance of the UK’s distilling sector to manufacturing, employment, tourism and the country’s international reputation for producing high-quality spirits. Gin producers range from established international businesses to small, independent distilleries, all of which contribute to the diversity and vitality of the category.

The Gin Guild welcomes measures intended to support pubs and other hospitality businesses through increased business rates relief.

A thriving on-trade is important to the gin category, providing opportunities for consumers to discover new products and for distillers to build relationships with hospitality operators. However, support for hospitality must be accompanied by a tax environment that enables producers to invest, innovate and grow.

The Guild urges the Government to work constructively with the spirits industry to assess the cumulative impact of successive duty increases and consider a more sustainable approach to alcohol taxation that supports responsible consumption, business resilience and long-term economic growth.