The whisky industry breathed a collective sigh of relief yesterday (22nd November) as it was announced that alcohol duty will be frozen until August 2024.
There had been apprehension that Chancellor Jeremy Hunt would impose a 15% duty hike on alcohol in the UK, potentially costing the industry over £100 million. The news of the freeze follows the biggest alcohol tax hike in almost five decades when a 10.1% duty was imposed in August of 2023.
The duty rate on spirits such as whisky currently sits at £31.64 per litre of pure alcohol. Prior to August this year, the duty was £28.74 per litre of pure alcohol.
Whilst the tax freeze means that the industry has a respite from tax hikes, Scotch whisky still endures a tax burden higher than any other types of alcohol such as wine, beer, and cider.
Scotch Whisky Association CEO, Mark Kent, said: “We want to continue the discussion with government about how the tax system can more closely reflect the number of units in a typical drink, rather than the strength of the finished product. Despite today’s duty freeze, cider is still taxed four times less than a spirit like Scotch Whisky – this is not fair and cannot be justified.”
For now, at least, industry figures can rest assured of 9 months of breathing room. We will have to wait until August 2024 to see if duty is raised again.
