Herts gin distillery worried the Autumn Statement could set out new alcohol tax
A gin distillery in Hertfordshire is worried the Autumn Statement could announce another rise in alcohol tax
Chancellor Jeremy Hunt is expected to announce a set of changes in tax and other fiscal policy changes.
Amongst changes could be expected another rise in alcohol tax.
This year already saw a duty rates increase announced in the Spring Statement, and implemented on August 1st, 2023.
The rise was set out in line with the Retail Price Index (RPI), and targeted all alcoholic products produced in or imported into the UK.
The industries most affected were spirits and wine producer and sellers, but the increase had an impact on individuals and businesses involved in the manufacture, distribution, holding, sale and consumption of alcoholic products more generally.
"...when it has an impact on small producers it has an impact on the community, the supply chain around there..."
For small spirits producers, another rise in alcohol tax could be enough to put them out of business altogether.
Ben Marston, CEO of Puddingstone Distillery, producers of gin in Hertfordshire, said: " It's very difficult to understand what the real motivation is for increasing the duty, and when it has an impact on small producers it has an impact on the community, the supply chain around there, and the charities that we support, for example."
"I've seen a number of breweries and distilleries disappear over the last 12 to 18 months because they cannot continue with increased costs."
"If it goes up again it's going to start to really destroy the industry unfortunately."
After the pandemic and the change in consumer behaviour, coupled with increased costs to producers and increased taxes, Mr Marston worries for the future of his company if the Government continues to add pressures on small businesses.
He said: "A bottle of our London Dry, for example, I think has about nine pound fifty's worth of alcohol duty on it, which we as a producer have to pay VAT on before it can even leave the distillery."
"If it goes up again it's going to start to really destroy the industry unfortunately."
The Statement is expected to set out the new targets to be hit over the next few months, and will determine a new set of policies.