CLH News #233 February 2020

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Property and Professional

ISSUE 233

FEBRUARY 2020

New Chancellor Urged to Cut Alcohol Duty to Stem Closures

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Newly appointed Chancellor Rishi Sunak is being urged to cut alcohol duty across the board on spirits, wines and beers in his upcoming budget to stem the closure of pubs bars and restaurants. The call follows Prime Minister party manifesto pledge which he said would include a commitment to “re-evaluate alcohol duty” with a view to increasing domestic sales and exports. Trade body the Wine & Spirit Trade Association (WSTA) urged the Chancellor to slash duty by 2% on March 11, and is also urging the government to use the phenomenal growth in gin sales abroad as a rallying call to help British spirit makers prosper at home and abroad The latest figures from HM Revenue and Customs show that British gin sales abroad, in 2019, were worth £672 million – up 9% on the previous year, and total sales of gin at home and abroad are now worth over £3.2 billion. In 2016 export sales of the juniper-based spirit broke

the half a billion-pound mark for the first time and since then the popularity of British gin has seen sales continue to soar. Thanks to the growing interest in British gin, which has been dubbed the ‘ginaissance’, UK gin exports are worth more than double the sales in 2010, which reached just over £288 million. Britain sends more gin around the world than it does beef, wheat or beer, with gin sales worth 14% more than sales of British beer overseas – sales of British beer totalling £590 million abroad in 2019. WSTA Chief Executive, Miles Beale, said: “The popularity of wine and spirit is a hugely important role to the revival of British pubs. The ginaissance has led pub goers to enjoy an increasingly diverse range of gins and, similarly, as the quality of food served in pubs has improved so have wine menu but we are not out of the woods yet pubs are vital to local communities and employ more than 500,000 people in the UK and to continue to stem the closure is pubs have seen

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in recent years, we are calling for a 2% cut to wine and spirit duty.” He added: “We now have year-end figures for the UK’s trade in 2019, and, just as was the case at the end of 2018, gin has ended on a high. It was not long ago that sales of gin at home and abroad broke the £3 billion barrier and the category continues to go from strength to strength. If freezing duty supports this sort of growth, imagine what a cut could do? “These numbers tell us three things – first, that neither Brits, nor those overseas, can get enough of British gin. “Second, these numbers tell us something else important – 47% of our gin exports go to the EU. As British spiritmakers gear up to tackle new export markets, it will be important to maintain the booming trade in British gin – linking British supply and European demand, and vice-versa – through the transition period on 31st December 2020. (CONTINUED ON PAGE 3...)

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