UK Craft Distillers Call for Spirits Inclusion in Small Producer Relief Scheme in Advance of Autumn Budget

In a November blog post, Hirt has explicitly asked the Chancellor to extend Small Producers Relief to alcohol over 8.5%. Currently, a lower rate of Alcohol Duty is only permitted on products with an ABV of less than 8.5%. Hirt is arguing that the current framework unfairly excludes small producers of gin, whisky, rum, and other higher-strength drinks.

Liam Hirt says, "Duty relief for beer and cider has proven its value. It has helped small producers compete with global corporations, encouraged hundreds of new entrants, and driven diversity and innovation. Extending the same support to spirits would deliver exactly the same benefits - and strengthen the UK's position as a world leader in craft distilling." The Small Producer Relief Scheme was introduced to correct structural disadvantages faced by small drinks producers. However, by restricting eligibility to products below 8.5% ABV, it excludes the vast majority of craft spirits, which typically sit at 37.5% ABV or higher."

"This limitation discriminates against distillers and contradicts the scheme's intended purpose. There's no public health basis for this exclusion," he added. "A unit of alcohol in a gin is no more harmful than a unit in a beer. In fact, many spirits consumed with low or zero-sugar mixers have fewer calories than most beers or ciders. According to recent HMRC data, spirits duty receipts have fallen by up to £700 million over the past two years*, despite duty increases. A reformed, inclusive SPR could reverse this decline by encouraging investment, compliance, and sectoral growth - boosting long-term revenues for the Treasury." Spirits sales now represent 38% of pub alcohol profits according to The Scotch Whisky Association**, despite a smaller share of total serves, and over half of consumers report a preference for spirits when drinking out. Hirt continues, "Premium and locally made spirits are key to pub profitability and consumer engagement. Giving small distilleries access to duty relief would allow more collaboration between pubs and local producers, keeping value in local communities."

With the UK craft spirits sector continuing to grow in global reputation but facing mounting tax pressures, small producers say reform is long overdue.

"The UK's duty framework should reward innovation, not penalise it. Including spirits in Small Producer Relief would deliver fairness, drive exports, and strengthen the entire drinks ecosystem - from distilleries to pubs to the Treasury."

The full list of co-signees include:

Liam Hirt - Circumstance Distillery

Richard Foster - Exploring Whisky

Shaun Watts - Ludlow Distillery

Paul Abbott - Grasmere Distillery

Jordan Lunn - West Midlands Distillery

Anthony - Spirit of Birmingham

Stephen Russel - Copper Rivet

Jordan Morris - Abingdon Distillery

Jared Cave - Integrity Malts

Ben Mordue - Elsham Wold Distillery

Laurence Coinsbee - Wharf Distillery

Matt Kay - London Distilling Co

Karl Bond - Forrest Distillery

Phil McLaughlin - Weetwood

Dan Humphries - Summerton Whisky Club

Amy Seton - Grain and Glass

Tim Ethrington-Judge - Avallen