The trade body, which represents 300 distilleries and brands, said successive duty hikes have damaged the hospitality sector and threaten to price consumers out of drinking in the on-trade.
The UKSA claimed a disparity exists between beer and spirits – namely that a measure of gin contains roughly half the alcohol and half the calories of an average pint, yet consumers pay more than twice the tax.
The group said pub licensees claim spirits account for 33% of all alcohol sales in pubs, bars and restaurants but their customers face the threat of being priced out as the cost of a serve must inevitably rise.
As the sector continues to lose jobs, UKSA polling showed one in four pubs has a distiller supplier that has gone bust.
Borrowing costs up
UKSA added duty on spirits is a direct driver of inflation while inflation on spirits has doubled in recent months following the most recent duty increase. That increase also led to an additional £310m in Government borrowing costs, and alcohol duty receipts are down by more than £200m this year.
A number of distillers in the UKSA vented their anger over the situation. Edward Bailey, director of TORS Vodka, Okehampton, said: “British drinkers are being punished at the bar while more than 70% of the cost of a bottle of UK-made vodka goes straight to the Treasury.
“We craft world-class spirits right here in the UK, yet our own Government is making it harder than ever for people to enjoy them.
“With the highest alcohol taxes in Europe, it feels like Westminster is taxing pride in British produce straight off the shelf. Ministers say they back British business and want to support pubs and hospitality. If they mean it, they need to show it – and it starts with reforming tax.”
Pubs are more than pints
Helston-based Saint Sithney Gin director Greville Richards added: “Pubs are more than pints. Since we launched two years ago, some of our biggest milestones have been getting Saint Sithney listed in pubs, bars and restaurants across Cornwall and beyond.
“It is wrong British consumers are taxed up to four times more for enjoying UK-made spirits than holidaymakers abroad drinking imported ones. That disparity has very real economic consequences.
“Freezing excise duty would protect thousands of jobs, support pubs and hospitality, and allow distillers of all sizes to plan, invest and innovate.”
The UKSA warned recent duty hikes, including a 10.1% rise by the Tories in 2023 followed by a further 3.65% increase by Labour in October 2024, have threatened vital jobs and exports.
It added British drinkers pay around 66p on a standard double measure (50ml) of spirits, which is double the rate in France (33p) and four times higher than in Spain (16p).
