Chancellor's local gin distillery Masons demands cut to tax on spirits

Spirits traders have urged Chancellor Rishi Sunak - who is MP for Richmond where Leeming-based Masons Gin resides - to lower the excise duty burden imposed on alcohol manufacturers.

Spirits duty would rise by default in the Budget this month unless ministers opt to freeze or reduce it, meaning the price of a gin and tonic would also increase.

Real ale group CAMRA has also backed the proposal ahead of the Budget being revealed on March 11.

It comes as figures released by the UK Spirits Alliance revealed the scale of Yorkshire's role in the recent boom in gin production in Britain.

There are currently more than 18,500 people employed in the spirits industry in Yorkshire & the Humber, although many more still are involved in the beverage's retail and supply, according to a report by BiGGAR Economics.

There are currently 45 distilleries in Yorkshire, the biggest of which - Mason's Gin - is based in the Chancellor's constituency.

The company was hit by disaster in Spring 2019 when a fire destroyed the old distillery.

Founder Karl Mason said a reduction in the "excessively high" duty rate for spirits would help businesses grow further.

Mr Mason said: “The Chancellor recently visited our distillery and was keen to hear how we managed to rebuild our business after a devastating fire destroyed the old distillery last year.

"We are extremely proud of what we have achieved to date and with more government support our family-run business can go from strength to strength.

"To allow us to further invest, grow and produce more of the drinks that people across Yorkshire and the country love, we urge Mr Sunak to cut the excessively high duty rate on spirits at the Budget.”

The Conservative manifesto last year vowed to ensure the tax system would "support British drinks producers" in recognition of the growth of the UK spirits trade in recent years, a pledge which was followed by a commitment in the Queen's Speech to review alcohol duty rates.

In an open call to the Treasury, Mason's said: “With this in mind, we are writing to ask that you use the forthcoming Budget to reduce the excise duty burden.

"At a time when Scotch Whisky and the Irish cream liqueur business in Northern Ireland labour under the burden of 25 per cent tariffs from our biggest export partner, this will give spirits producers across the UK the stability and confidence we need to plan effectively for the coming years.

"It would allow us to build on the significant contributions we already make to the UK economy – and deliver further growth, investment and revenues to the Treasury.”

The Campaign for Real Ale (CAMRA) has echoed the calls, and is expected to ask politicians on Tuesday that there should be a preferential rate of duty for beer to ensure the survival of the pub industry.

Camra chairman Nik Antona said: "There is significant support for our proposals for a preferential rate of duty for beer sold on tap in pubs and we look forward to talking to more MPs about our economic research.

"Recent beer duty freezes and business rates reliefs, while welcome, are merely sticking plasters. Far too many pubs are still fighting for their survival.

Conservative MP Giles Watling said: "Pubs are important community assets and we need to do all we can to protect them. Unfortunately, previous freezes in beer duty, while welcome, have also allowed the supermarket to continue undercutting the pub with cheap alcohol.

"That was because of single market rules, which equalised rates between pubs and supermarkets. Now we have left the EU, I want to change that and differentiate the rate of duty so that it finally benefits and supports our pubs."

A Treasury spokesperson said: “We’ve saved drinkers and businesses over £5.2bn thanks to changes to alcohol duties we’ve made since 2013. We keep all taxes under review.”