UK spirits producers need the right conditions to thrive domestically - Carolyn Harris
A generation ago, ask someone to name a UK produced spirit and the answer would likely have been, a rather vague, ‘Scotch Whisky’ or ‘London Dry Gin’. But, in recent years, we have seen an influx of small distilleries popping up the length and breadth of the country, producing a growing range of spirits from whisky and gin, through to vodka, rum and even tequila.
Yorkshire is no exception, with a rich and growing spirits scene. Producers continue to meet consumer demand for innovation and premium choice. Through some of our most turbulent times, the Yorkshire – and UK - spirits industry has become a national success story.
It is an industry that doesn’t always get the credit it deserves, and despite the obvious successes over recent years, it is also an industry facing significant barriers and uncertainty.
That is why I set up the UK Spirits All Party Parliamentary Group (APPG). As Members of Parliament, we can be the voices of these businesses in our communities, both to promote their successes and support their needs. As the highest taxed category of alcohol in the UK, producers of spirits are at a distinct disadvantage compared to their beer and wine counterparts when it comes to profit margins and subsequent capital for investment.
Many of these businesses are struggling to ride the wave of successive duty increases from both the previous and current governments. One in seven distillers surveyed have said these increases are crippling their ability to expand, and many are facing the threat of closing their doors for good.
On February 1, another increase to excise duty took effect, meaning that prices for consumers will no doubt be forced up again. I campaigned for a freeze in excise duty at the last Budget, and I am disappointed that distillers and the businesses they support are being punished. That includes pubs; they are so much more than pints. Landlords tell me time and again that spirits offer higher profit margins, as well as greater choice. I know that when I go out, my friends and I would prefer to have a gin and tonic than a pint of beer.
Later this year, the Government will review excise duty. I urge ministers to ensure that they carry out a proper review. This can’t just be a box-ticking exercise; it needs to be a full and thorough review that really takes into account the needs of the sector and the wider businesses that it supports.
Across the country, the spirits industry supports over 446,000 jobs, contributing £13bn to the UK economy. As a trade envoy, I know that there is huge demand overseas for British spirits. Of course, if we want these businesses to take advantage of export opportunities around the world then we need to make sure that they are being given the right conditions to thrive domestically.
There really is huge potential for the UK Spirits sector to continue to grow and succeed both at home and overseas, and as Chair of the APPG I hope to play a part in making this happen, whilst also being mindful of the need to ensure responsible drinking.
Our goal is simply to support these home-grown businesses to flourish. This will benefit the distillers across our communities themselves and ultimately have a positive impact on the UK economy.
My message to my colleagues across Yorkshire is clear; we must support Yorkshire spirits.
Carolyn Harris is the Labour MP for Neath and Swansea East.