We are being taxed to death, spirit 
makers warn amid higher alcohol duties, wages and business rates

Spirit makers have urged the Government to ‘stop taxing us to death’ amid higher alcohol duties, wages and business rates.

The UK Spirits Alliance, which represents 300 large and small drinks producers and bars, accused the Government of threatening the survival of family firms.

Duty on gin – which is the UK’s favourite spirit by volume sales – increased by 3.66 per cent at the last Budget in November, following a 3.65 per cent rise in February 2025 and a 10.1 per cent increase in 2023.

Stephen Russell, the founder of family-run firm Copper Rivet Distillery in Chatham, Kent, said: ‘We don’t want government ‘help’, just stop taxing us to death and leave us alone to make great products, make customers happy, employ local people and invest in growth.

‘This government is making it harder and harder to innovate and grow.’

Russell is among those in the industry to claim that the Treasury’s duty increases are back-firing – as higher prices are leading to people buying fewer drinks.

Tax receipts from spirits are down by over £100million year-on-year, according to the latest figures from HM Revenue & Custom. The UK Spirits Alliance puts this down to off-putting price hikes.

Britons are thought to be turning away from booze due to concerns over health too.

And successive alcohol duty hikes have been followed by higher minimum wages and business rates from this month, which are also stifling many firms, the industry group said.

Rupert Duke, UK Spirits Alliance spokesperson, said: ‘Spirits producers are being hit on all sides by rising costs – April’s business rates and wage increases follow the latest hike in duty.

Britain’s brilliant spirits industry is the envy of the world – but instead of backing distillers we’re taxing them out of existence.’

Distillers are calling for the government to review duty on their products.