UK pubs are being forced to absorb a further impact to their bottom line this month, with the introduction of a 3.65 increase in the excise duty on spirits, just two years after the levy was raised by 10.1 percent.

Addressing the Chancellor, the UK Spirits Alliance branded the move “crushing” for both pubs and distillers, who support over 446,000 jobs and contribute
£13 bn to the UK economy.

“Following the 2023 duty increase, a survey of distillers showed that 70 percent of distilleries in the UK feared for their ability to invest in their business as a result of recent duty increases,” states the letter.

“A more recent poll of pubs – ahead of the 2024 increase – showed that one in four have a distiller supplier that has gone out of business.”

Noting that spirits make up one-third of all alcoholic drinks sales in hospitality settings, the association added that recent polling found spirits generate a higher profit margin per serving than beer for 66 percent of pub owners.

“However, your government has continued to focus support only on draft beer. Worryingly, a survey last year showed some 16 percent of pubs say they are unlikely to be open in 12 months’ time.”