Organisations representing retail, hospitality, trade bodies and supply chain businesses affected by excise duty on spirits are being called to give evidence on the impact of the UK’s alcohol excise duty system on the drinks industry.
The All-Party Parliamentary Group (APPG) for spirits has today launched a major call to evidence, asking businesses in the UK to submit their views and experiences to help inform future policy.
This inquiry marks the first formal initiative of the APPG since its establishment in July 2025. The group, chaired by Labour MP Carolyn Harris, was set up to champion the UK’s spirits industry and promote regulatory and fiscal frameworks that allow the sector to thrive.
The APPG’s call to evidence now seeks input from businesses of all sizes, from small craft distilleries to large-scale producers, as well as retailers and hospitality operators. The initiative looks to crowdsource information on how current duty rates are shaping operations, competitiveness and future growth.
Harris said: “The UK’s spirits sector is an engine for jobs, exports and innovation – but successive increases in excise duty are putting its future at risk.
“Through this inquiry, we want to give the industry a platform to speak directly to Parliament. Whether you’re a distiller, bar owner, or trade organisation, your insight will help shape a better, more sustainable approach to alcohol duty.”
In recent years, changes to the alcohol duty regime have significantly impacted spirits producers. In August 2023, a revised duty system introduced by the then-Conservative government saw a 10.1% increase in spirits duty – the largest in decades. As part of last year’s autumn Budget, Rachel Reeves and the Labour government increased duty again by 3.65%.
These consecutive hikes have reignited widespread concern across the sector about the sustainability and fairness of the current excise regime – especially in comparison with the treatment of other alcohol categories and international standards.
The inquiry will examine the structure, application, and outcomes of the excise duty regime for spirits, focusing on: the economic impact on UK spirits producers from small, independent distillers to global exporters; how duty affects competitiveness, investment and exports; the effect on jobs, innovation and regional economic development; and comparisons with the duty treatment of other alcoholic beverages and international excise regimes.
The call to evidence is open from 23 July to 22 August 2025. Businesses and individuals can submit responses online here.
