Spirits: Excise Duties

(asked on 25th November 2025) - View Source

Question to the HM Treasury:

To ask the Chancellor of the Exchequer, what recent discussions she has had with representatives of the drinks industry about the potential impact of spirits taxation on pub profitability.


Answered by
Dan Tomlinson Portrait
Dan Tomlinson
Exchequer Secretary (HM Treasury)
This question was answered on 3rd December 2025
Alcohol duty is charged at the point of production or importation of drinks, and is therefore not generally paid directly by pubs.

Further, the United Kingdon has an international obligation under WTO rules to treat imported and domestic products fairly. A duty-based tax incentive that applied only to domestic spirits producers is likely to be inconsistent with these legal obligations.

To support spirits producers, the Government has:

  • agreed a trade deal with India which will reduce tariffs on gin and whisky exports from 150% to 75% initially, and then 40% over time;
  • ended the alcohol duty stamps scheme on 1 May 2025, reducing the administrative burden on spirit producers and importers, including Scotch Whisky distilleries;
  • invested £5m in the Spirits Drink Verification Scheme (SDVS) to enable HMRC to cut the fees it charges producers for its verification service.

Treasury Ministers and officials have meetings with a wide variety of organisations in the public and private sectors as part of the process of policy development and delivery.

Details of ministerial and permanent secretary meetings with external organisations on departmental business are published on a quarterly basis and are available at: https://www.gov.uk/government/collections/hmt-ministers-meetings-hospitality-gifts-and-overseas-travel

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