Government must now back the industry and the sections of the economy it supports by reducing spirits excise duty and calling time on unfair tariffs, said the Spirits Alliance.

Spirits contributed more than £3.7bn to Treasury receipts in 2018 and are responsible for more than £5bn in UK exports a year as premium products are highly valued in both established and developing markets including the US, China and India.

The number of distilleries in the UK has grown to 470 and the industry now supports hundreds of thousands of jobs across the UK.

A spokesperson for the UK Spirits Alliance said: ‘Spirits producers up and down the UK are desperate to grow their businesses, and it’s really encouraging to see producers are overwhelmingly supportive of investing even further to create new jobs.

‘We’re calling on the Chancellor to back spirits in the upcoming Budget, allowing our members to hire more staff and drive further investment into our iconic industry, as well as generating bigger receipts for the Treasury’.

In the March 2020 Budget, the government recognised our contribution to the economy by freezing duty, UK Spirits Alliance said. As a result, revenues for the public purse are expected to increase. But now more needs to be done to support recovery and protect jobs.

Despite recent freezes, the tax burden on UK spirits is 70% – that’s £10.38 on a typical £14 bottle of gin or whisky.

Since October 2019, 25% tariffs have been applied to single malt Scotch whiskies and liqueurs by the US, the sector’s biggest export market, costing the UK £200m.