Hospitality and Scotch Whisky unite in call for duty freeze
UKHospitality and the Scotch Whisky Association have joined forces to urge the Chancellor to freeze alcohol duty, warning that rising costs and job losses are crippling both sectors.
UKHospitality has joined forces with the Scotch Whisky Association (SWA) to urge the UK Government to freeze alcohol duty in the upcoming Autumn Budget. Both organisations say the move would provide much-needed relief for businesses facing rising costs and global pressures.
Mounting job losses
The joint call comes as both sectors report significant cuts to jobs. UKHospitality recently revealed that almost half of all job losses since the last Budget have been in the hospitality sector. The Scotch Whisky industry has also shed 1,000 jobs, representing 2.7% of its direct workforce, since the last duty rise.
The SWA has attributed the decline to a combination of a 14% increase in Excise duty over the past two years and external pressures, including tariffs in the US. Scotch Whisky and other spirits currently face the highest duty rates of all alcohol categories in the UK and the highest tax burden in the G7.
Industry leaders respond
Mark Kent, Chief Executive of the SWA, said: “Our businesses are facing pressure like never before. Across Scotch Whisky production and hospitality, we’re seeing cuts to jobs and investment which are a result of challenges both at home and around the world. The government pledged to support our industry, but distillers now face multiple barriers to doing business, making them uncompetitive and vulnerable to the impact of headwinds domestically and abroad.
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“An Excise duty freeze is in the Chancellor’s gift to deliver – which would in turn give respite for businesses, and deliver Treasury revenue, which the government’s own figures show has flatlined since the first duty rise was confirmed.
“For Scotch Whisky producers, hospitality is crucial, and they know the importance of a warm welcome to Scotland’s national drink. We are united with the hospitality industry in our call for those words of support we heard from the Prime Minister during the election campaign to translate into urgent action in November’s Budget.”
Allen Simpson, Chief Executive of UKHospitality, added: “As we head towards the Budget, it’s clear that businesses across the supply chain need urgent support to survive. We’ve seen swathes of job losses across the hospitality sector, which is the backbone of the UK’s economy and wider society. We know hospitality’s disproportionate tax burden impacts the entire sector, from pubs and bars to distillers and other producers.
“That’s why we’re supporting the Scotch Whisky industry’s call for a long-term duty freeze, which would help to alleviate some of the pressures facing the hospitality supply chain.
“We hope the Chancellor will heed the warnings of our combined sectors in November’s Budget, and deliver on the UK Government’s promises of support while boosting economic benefit for the Treasury in return.”
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