Rachel Reeves considers another hike to booze duties in move that could ‘kill pub industry’

A staggering 98 per cent of pub landlords believe Labour is not backing pubs or supporting the industry

MPs and industry figures have told us they fear a fresh hammering from the Treasury as the Chancellor looks to fill her economic black hole.

LBC understands the Chancellor is looking at a second year of RPI inflationary rise in duties, which senior figures fear would "kill the industry".

Last year's Budget hiked duties by 3.6 per cent, which put the average bottle of wine up by around 54p, and gin by around 32p.

And there are similar fears the Chancellor will do the same by allowing duties to go up in line with inflation again, as Britain faces a painful Budget.

LBC has also seen exclusive polling from Survation for the UK Spirits Alliance, which reveals that nearly three in ten pubs fear they may not survive another year if costs increase – equivalent to around 11,000 venues across the UK.

An overwhelming 96 per cent of pub bosses say they know of local pub closures.

And a staggering 98 per cent of landlords believe Labour is not backing pubs or supporting the industry.

These stark figures, revealed in new research commissioned by the UK Spirits Alliance, come ahead of the Autumn Budget as businesses across the hospitality sector come together to call for a complete freeze on excise duty.

Campaigners are calling on the Chancellor to ensure a complete freeze in excise duty on spirits to help the sector.

They point to stats which show that spirit revenue receipts for the first half of the financial year are down -£138m (-7.1%) compared to the same period in 2024.

Husband and wife duo, Braden and Katherine Saunders, run Doghouse Distillery, making whisky, gin, vodka and aperitivo, from scratch in Battersea, but are struggling in the current environment.

Years of duty increases, high business rates and a dip in employment have hit their business margins.

Braden told LBC: "We are on our knees, we are trying to recapitalise our business for the next two years, we are in survival mode.

"We are not thinking about new products, new staff, anything outside of survival, all gone. If they do it, it might be the end of us, the end of a lot of other businesses.

"We spent one million pounds here and nine years of work.

"If the pub gets another knock, they're not going to survive."

And his wife, Katherine, said the future of the pub was at stake.

She said: "We have to protect that.

"A pub doesn't necessarily mean someone is drinking into oblivion.

"It's a social place to be for people of all ages.

"You sit in a pub and you see a couple in their early 20s on their first date, you turn around and there's a gentleman and his dog who have come in for his one pint before going home. The cross range of people, ages, cultures. It's a beautiful thing to see.

"We have to cling onto that, or one of the key parts of British culture will be lost."Labour MP Carolyn Harris told LBC there would be a knock on impact for the economy if she were to hike duties again.

She said: "I am pleading with the Chancellor to put a freeze on duty to keep people in work. It's an industry that's given so many people an opportunity."

And Tory MP Joe Robertson, who is a part of the APPG on spirits, told us: "The Chancellor is squeezed, she squeezed herself a year ago and she's got to find money from somewhere.

She'll be looking in all corners and in all cupboards. She should leave the spirits industry alone and she should freeze duty.

"It's not just about the consumer end, it's about backing British businesses; these are British brands exporting abroad.

"It's selling UK PLC and she should be backing it."

The Treasury declined to comment on Budget speculation.

But a spokesperson added: “Our distilleries are vital to Britain’s economy, so we’re making it easier for them to thrive: no export duty, lower licensing fees, reduced tariffs, and a cap on corporation tax.

“Whiskey and gin exporters are some of the biggest winners from our recent India trade deal, cutting tariffs from 150% to 40% and boosting whisky exports by £1bn."