SWA joins with BBPA and WSTA in calling for reinstatement of duty freeze

As organisations representing the UK’s world-class drinks producers, pubs and retailers, we welcomed the duty freeze announced by HM Treasury just 26 days ago. It underpinned the investment our member companies are making across the UK, supported hundreds of thousands of jobs, and gave our industries stability and confidence at a time of rising energy costs, Covid-recovery, supply chain pressures and fragile consumer confidence. 

That stability has now been shaken, and confidence lost, due to the u-turn announced on Monday.

The reversal of the duty freeze will mean a double-digit tax rise for beer, wine and spirits – industries which together contribute £13bn to the Exchequer through duty alone. For hard pressed consumers, this will mean a significant increase in the price of their favourite drinks at a time when our pubs, restaurants and shops are all struggling to manage increasing costs and keeping their doors from shutting for good this winter.  It is vital that a drink with family and friends, in pubs and hospitality venues serving their communities in every part of the UK, does not become an unaffordable luxury.

It doesn’t have to be this way. Over the past five years, during a stable period for alcohol duty, revenue has increased by 18%. In 2017, the Office for Budget Responsibility forecast that revenue would increase by just 13% over the same period. Despite the challenges of Brexit, punitory tariffs and a global pandemic, our sectors have continued to deliver increased revenue to the Exchequer because of, not despite, duty freezes.

Now is the time to support our industries – not let us pay the price for “going too far, too fast” in other fiscal measures.

We call on you to support, not penalise our industries - protect the jobs we create, back the investment we attract, and cancel the double-digit tax hike.