UKHospitality has joined forces with the Scotch Whisky Association (SWA) in calling for the UK Government to freeze alcohol duty in the upcoming Autumn Budget, as both sectors warn of growing pressures and job losses across their industries.
The combined plea comes just weeks after UKHospitality reported that nearly half of all job losses since the last Budget were in the hospitality sector. The Scotch Whisky industry has also revealed it has lost 1,000 jobs since the last duty rise, representing 2.7% of its directly employed workforce.
Mark Kent, Chief Executive of the Scotch Whisky Association, 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.
“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.”
Excise duty on spirits has risen by 14% in two years, making Scotch and other spirits the most heavily taxed alcohol category in the UK. The SWA points out that the UK now has the highest spirits duty rate among G7 nations.
Echoing the call, Allen Simpson, Chief Executive of UKHospitality, said, “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.”
The joint statement from two of the UK’s biggest trade bodies in the sector signals growing concern over the impact of tax policy on business sustainability and employment across the wider visitor economy.