The Gin Guild supports the campaign for a reduction in alcohol duty and calls on the Government to use the forthcoming Budget to reconsider the current approach to spirits taxation.

The UK gin industry is an important part of the country’s drinks, hospitality, tourism and manufacturing economy. British gin is recognised internationally for its quality, innovation and diversity, with distillers of all sizes contributing to jobs, investment and economic activity across the UK.

However, the cumulative impact of increases in alcohol duty since 2023 is placing increasing pressure on the spirits industry and the wider hospitality sector.

The latest industry figures show that spirit volumes have fallen by 15.3% over the past three financial years. At the same time, alcohol duty receipts have fallen rather than increased, despite successive increases in duty rates. This raises legitimate questions about whether further increases are achieving the revenue outcomes expected by the Treasury.

Under current plans, alcohol duty is due to rise again in line with inflation at the forthcoming Budget. For gin, the WSTA estimates that a 2.9% increase would add approximately 31p in duty to a standard bottle.

The Gin Guild believes that this is an opportunity for Andy Burnham’s Government to reconsider the direction of travel.

A reduction in spirits duty would provide much-needed support to distillers, pubs, bars, restaurants and other businesses across the hospitality supply chain. It would also help improve the competitiveness of an industry which makes a significant contribution to the UK economy and has built a world-leading reputation for gin.

Importantly, the Gin Guild believes that a more sustainable duty regime should seek to balance the Government’s objectives around public finances and responsible consumption with the economic realities facing businesses and consumers.

The evidence of falling volumes and declining duty receipts suggests that simply increasing rates should not be regarded as the only route to achieving those objectives. A more proportionate approach could support legitimate businesses, encourage growth and investment, and potentially broaden the tax base through stronger sales.

The Gin Guild therefore supports the UK Spirits Alliance‘s call for Government to reduce alcohol duty on spirits and urges the Chancellor to use the forthcoming Budget and the ongoing review of the alcohol duty system to establish a fairer, more sustainable and growth-supportive approach to spirits taxation.

The Gin Guild remains committed to the responsible production, promotion and consumption of gin and to working constructively with Government and other stakeholders to support a thriving and responsible UK spirits industry.