Yorkshire rum maker says Labour spirits duty hike could be 'the last straw for many small distilleries'

At the same time the Chancellor cut 1p off the draught duty on every pint of beer or wine.

This came after Jeremy Hunt added 10.1 per cent to spirits duty in his first Budget after Liz Truss’ disastrous fiscal policies.

Distillers say the triple-whammy of alcohol tax hikes, National Insurance contributions rising and inflation threatens their survival.

Piers Moat, director at Twisted Roots Distillery Ltd, near Bridlington, said this could be “the last straw for many small distilleries”.

“We have no choice but to pass on the cost of any tax increases to the consumer.

“Alcohol sales, in general, are already declining along with general consumer confidence.

“Many small distilleries have had to close their doors. We are lucky enough to be able to diversify our property, but others will not be so lucky.”

Toby Whittaker, co-founder of award-winning Whittaker’s Gin near Dacre, North Yorkshire, urged the Government to get behind distillers.

“The British spirits industry is the UK at its best – inventors, local ingredients, people having a great time at home or at the pub,” he said.

“Why do successive governments keep battering distillers and adding to our costs? It doesn’t make sense for the Government to raise duty on spirits.”

While Natalie Hall, director at York Gin, added: “There’s no doubt that - along with other tax changes - they will affect our profitability.

“The craft spirits industry really is one of the UK’s success stories of recent years, driving quality and innovation that is the envy of the world.

“As such, our industry needs recognition as a contributor to economic growth and must not be taken for granted.”

Whittaker’s, York Gin and Twisted Roots Distillery Ltd are all part of the UK Spirits Alliance, a coalition of 280 distilleries across the UK.

A spokesman said: “Brilliant British entrepreneurs who, through guts and hard work, have created businesses that produce exciting quality products that consumers love are being dumped by this government.

“For many distillers and their staff this extra burden will be the end, and Rachel Reeves will have been responsible for shutting down good local businesses that many communities are proud of.”

While the Conservatives have claimed that a reduction in business rates relief combined with the increase in National Insurance contributions, could add thousands of pounds in tax to Yorkshire’s pubs.

Kevin Hollinrake, the Shadow Communities Secretary and MP for Thirsk and Malton, said: “First the Labour Government came for pensioners, then they came for the farmers, then they came for small businesses and now they’re coming for your local pub.

“Labour’s war on pubs will load tens of thousands of extra costs onto pubs, raise the price of a pint, put jobs in jeopardy and put our pubs at risk of closure.

“This is why we’ve launched the Save your Local campaign. Pubs are at the heart of our towns and cities, and we must protect them from Keir ‘no beer’ Starmer.”

However, the Government has claimed that knocking 1p off duty on pints of beer and cider, while making small producer relief more generous, adds up to £85m worth of tax cuts.

Exchequer Secretary to the Treasury, James Murray, said: “Our pubs and brewers are an essential part of the fabric of the UK and our brilliant high streets.

“Through draught relief, small producer relief, and expanding market access for smaller brewers, we will help boost sector growth and deliver our plan for change to put more money in working people’s pockets.”