Yorkshire distillieries are 'fighting for survival' ahead of the Autumn Budget
Independent distillers across Yorkshire have warned they are currently “fighting for our very survival” and fear further tax hikes to come in the Autumn Budget.
The county is home to more than 50 spirit manufacturers, many family-run businesses, however they are facing duty hikes as well as rises in National Insurance contributions.
Karl Mason, director of Masons Gin in Leeming Bar, North Yorkshire, said: “At Masons, we're more than just a distillery - we're a true family affair. With our daughter working alongside us, every bottle tells a story of dedication and heritage.
“But as things stand we are fighting for our very survival. Successive duty hikes and a narrative that talks down our business means that we risk losing yet more small businesses across Yorkshire.”
Toby Whittaker, co-founder of Whittaker Gin in Nidderdale, North Yorkshire, said he was “terrified” of what the Chancellor might do in the next Budget.
Last autumn, Rachel Reeves announced a 3.65 per cent increase in the spirits levy.
The National Institute of Economic and Social Research (Niesr) has predicted Ms Reeves is now set for a £41.2bn shortfall by 2029-30, and will have to raise taxes or cut spending to plug the gap
“We keep being told that trade deals are the answer to our problems,” Mr Whittaker said.
“We would love to be taking advantage of these new export opportunities, but without support in our own market then we just can’t.
“Our industry has been singled out for swathes of tax rises and successive duty hikes.
“Spirits contribute so much to the economy, and we should be a big part of our country’s growth story. But we can’t do that unless the Government steps up and backs us.”
The UK Spirits Alliance found that the duty not only impacts distillers, but also Yorkshire’s much-loved pubs.
Polling has found that one in four pubs have already lost a spirit supplier due to rising costs.
Natalie Hall, director at York Gin, said: “Our very story began in one of York’s independent pubs; when we suffer, they suffer.
“From excise duty to National Insurance, higher taxes are hammering us and stifling our ability to grow.
We need the Government to stop hiking the cost burdens on us; with the current tax regime we risk losing yet more businesses across Yorkshire”.
The Chancellor said earlier this week: “We haven’t even set the date yet for the Budget, but the key focus of the Budget is going to be to build on numbers that we’ve seen today to boost productivity and growth and prosperity all across the country.
“That is my number one priority as Chancellor, to get our economy firing off all cylinders so that working people in all parts of the country will feel the benefits of that economic growth.”