Calls for Alcohol Duty Freeze in Upcoming Budget
Industry leaders urge Rachel Reeves to freeze alcohol duty amid rising production costs and economic strain on distilleries.
Pressure Mounts for Duty Freeze
Rachel Reeves is facing increasing pressure to freeze alcohol duty in her upcoming Budget. A coalition of industry leaders, including the Scotch Whisky Association and the Welsh Whisky Association, has penned an open letter urging her to avoid raising excise duties on alcohol until the end of the current Parliament.
Industry Strain and Calls for Action
The letter highlights the challenges faced by businesses following a 14% increase in alcohol duty over the last two years, which has negatively impacted investment and production in the UK. The industry leaders claim the current tax regime is "unfair" and has led to reduced headcounts in some companies.
A Plea for Support
They argue that freezing the alcohol duty would not only support their businesses but also demonstrate the government's commitment to iconic British products like gin and Scotch whisky. The plea emphasizes that this freeze should be viewed as an investment rather than a handout, aiming to bolster jobs and economic growth.
Government Response
A spokesperson for HM Treasury acknowledged the importance of distilleries to the UK economy, citing initiatives such as reduced tariffs and lower licensing fees to help the industry thrive. They also pointed to the benefits from recent trade deals, particularly with India, which have significantly boosted whisky exports.
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