‘Cheers chancellor!’: Alcohol duty freeze welcomed by the drinks industry

The drinks industry has breathed a collective sigh of relief at chancellor Jeremy Hunt’s decision to freeze alcohol duty, which he announced in his Autumn Statement to Parliament yesterday.

The industry was bracing itself for a second duty increase this year – four months after the government’s new alcohol duty regime was brought in on 1 August.

The new duty, introduced in the summer, was the largest alcohol tax rise for almost 50 years.

Hunt’s decision to freeze excise duty comes at a time when wine and spirits have seen a nearly triple digit increase in inflation in the last three months.

Commenting on the Autumn Statement, UK Spirits Alliance (UKSA) spokesperson and distiller Stephen Russell said: “We raise a toast to the chancellor today for his decision to freeze duty and thank him for listening to thousands of distillers, landlords and bar owners up and down the UK."

The UKSA, which represents the 280 small and independent distilleries across the country, had previously warned Hunt that a second tax hike would have added further burdens to an already struggling spirits industry and hospitality sector.

But, Russell said, Hunt's announcement "has raised the spirits of the sector" and was a "vote of confidence in this vibrant homegrown sector".

Miles Beale, chief executive of the Wine and Spirit Trade Association (WTSA), said the freeze comes as a “huge relief”. He added the “huge hike” in August followed a “worrying decline in sales […] A second duty rise would have been disastrous”.

Beale added he hopes the government will “lock in the freeze” for as long as it is in power.

And while industry bodies are happy, producers, too, are adding their voices to the decision.

Nuno Teles, managing director of Diageo GB, said: “Today we raise a glass to the chancellor and the prime minister who have listened to the industry’s plea for support and decided to back our homegrown sector, that employs so many people across the UK.

“Drinkers and pub-goers across the country now have even more reason to celebrate this festive season. Cheers Chancellor!”