Pubs in Crisis: Rachel Reeves’ Hidden Tax Hike on Wine and Whisky Hits Drinkers Hard
Rachel Reeves is increasing taxes on wine and whisky in pubs, starting tomorrow. This new 3.6% tax hike comes after a previous 10% increase in 2023, making these drinks more expensive than ever. This is bad news for pub-goers and could hurt pubs even more, as many are already struggling to stay open.
In her recent budget, Reeves claimed to support pubs by reducing the cost of a pint by 1.7%. However, she quietly added the tax increase on wine and spirits in the fine print.
The situation is also tough for gin and whisky producers. They are already dealing with higher grain prices, partly due to the war in Ukraine, and now face higher taxes. Richard Longworth, who runs a distillery in Lincolnshire, said this tax increase will hurt businesses and doesn’t seem to be part of a clear plan for growth. He called for better support for local businesses that help the economy.
Richard Tice, from Reform UK, criticized the government for raising taxes on things people enjoy, like drinks at pubs. He urged people to support British pubs and hospitality businesses, even though the government’s policies are making it more expensive.
Stephen Russell, from the UK Spirits Alliance, said the tax increase is a blow to distillers, pub owners, and customers. He warned that more pubs and distilleries could close because of these policies. Currently, over 70% of the cost of a bottle of gin or whisky goes to taxes, and pubs are already seeing fewer customers and lower profits.
In 2024, 83% of pubs reported lower profits, and 67% saw fewer customers. This tax hike could further harm the UK spirits industry, which is worth £13 billion and supports 13,000 jobs.
