A SENIOR ally of Sir Keir Starmer has warned that the Budget is “punishing” bars as punters pay more for booze from TODAY.
Labour MP Carolyn Harris said the rise in alcohol duty is “hugely damaging” for Britain’s spirits industry.
She said distillers and the businesses they support are “being punished”.
The tax on alcoholic drinks is increasing by 3.66 per cent today, due to changes by Rachel Reeves.
Just as Brits toast the end of Dry January, duty on a typical bottle of gin will increase by 38p to £8.98 after VAT. A bottle of Scotch whisky will see its duty increase by 39p and a bottle of red wine will cost 14p extra.
Ms Harris, chair of the APPG for UK Spirits, said: “Another duty hike on spirits will now hit people who simply want to enjoy a drink after a hard day’s work.
“Pub owners consistently tell me that spirits are among their most profitable products – so this tax rise compounds the difficulties they’re already facing.
“Pubs are more than pints. I’m calling on Ministers to ensure that upcoming duty review is comprehensive and considers the serious pressures bearing down on this struggling industry.
“Our spirits sector creates jobs, opportunity and employment. We must let it thrive.”
It comes after Ms Reeves announced an £80million financial lifeline for pubs and music venues.
Tories called the measures, where pubs would save an average of £1,650, a “sticking plaster”.
‘LANDLORDS AND DISTILLERS FEAR FOR FUTURE’
Carolyn Harris, chair of the APPG for UK Spirits
“The spirits industry doesn’t always get the credit it deserves, and despite the obvious successes over recent years, it is also an industry facing significant barriers and uncertainty.
“That is why I set up the UK Spirits All Party Parliamentary Group (APPG). As the highest taxed category of alcohol in the UK, producers of spirits are at a distinct disadvantage compared to their beer and wine counterparts when it comes to profit margins and subsequent capital for investment.
“Today, another increase to excise duty will take effect, meaning that prices for consumers will no doubt be forced up again – just as people are looking forward to a well-deserved drink at the end of Dry January.
“I campaigned for a freeze in excise duty at the last Budget, and I am disappointed that distillers and the businesses they support are being punished. Take pubs as an example. They are so much more than pints and rely on spirits to boost their bottom line and offer choice to customers.
“Later this year, the Government will review excise duty. I urge ministers to ensure that they carry out a proper review. This can’t just be a box-ticking exercise; it needs to be a full and thorough review that really takes into account the needs of the sector.
“The UK spirits industry has so much potential but it needs support. The increase today will be hugely damaging for the sector, and it is little wonder that landlords and distillers alike are so fearful for their futures.”
A Treasury spokesperson said they need to rebuild the public services we all rely on.
They added: “Alcohol duty plays an important role in ensuring public finances remain fair and strong and funds the public services people rely on every day.”
