Spirits Sector Responds to £94m Fall in UK Spirits Duty Revenue
Eight trade bodies representing the spirits sector have written to the Chancellor warning of serious financial harm caused by recent tax increases.
The warning comes amid new figures revealing a significant drop in revenue following duty on spirits rising by 17% over the past three years. Industry groups estimate the hike cost the sector around £94 million in 2025/26, with total revenue running approximately £1.1 billion below projections made when the current alcohol duty framework launched in 2023.
The coalition of drinks industry groups, among them the Scotch Whisky Association and the Wine and Spirits Trade Association, addressed their concerns directly to Rachel Reeves, criticising what they describe as an excessive tax burden on the sector.
The Government’s own data shows that UK spirits producers, our supply chains and consumers across the country, can see the devastating impact of the 17% increase to spirits duty over the last three years. Spirits revenue has fallen by £94m in 2025/26, and revenue is £1.1bn lower than was forecast when the new alcohol duty system was introduced in 2023.
In a joint statement they said: “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.
“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