An open letter from the Scotch Whisky Association, UK Spirits Alliance, Welsh Whisky Association, English Whisky Guild and Drinks Ireland has urged Chancellor Rachel Reeves to freeze the rate of excise duty on alcohol for the duration of the current Parliament. The signatories want a multi-year freeze for spirits and say there should be no further widening of the tax gap between spirits and other alcohol categories.

The letter argues the present regime is unfair and has placed a burden on members, with some delaying investment or production in the UK and others looking to invest abroad. It notes a 14% rise in duty over the past two years while the overall tax take from the levy has fallen. The signatories say such a move would show the Government’s commitment to the UK’s distilling sector and give firms confidence to invest.

A Treasury spokesperson said distilleries are vital to Britain’s economy and outlined measures to support them, including no export duty, lower licensing fees, reduced tariffs and a cap on corporation tax. They cited the India trade deal as cutting whisky tariffs from 150% to 40% and boosting whisky exports by £1 billion (€1.2 billion). Officials added that the steps aim to safeguard public finances to fund the NHS and other services.