The government has been heavily criticised by the whisky distillery industry for leaving them out of its Energy Bill Relief scheme.

Eligible non-domestic customers facing soaring gas and electricity prices in light of global economic pressures have benefitted from the state-funded discount since 1st October 2022.

A Scotch Whisky Association (SWA) survey has found 27% of distilleries expect energy costs to rise by over half again this year.

Mark Kent, Chief Executive of the Scotch Whisky Association, said: “The government provided much-needed certainty in December by extending the duty freeze. It was the right decision then and would be the right decision in the March Budget.

“Unlike other parts of the alcohol industry, distillers have been left out in the cold and unable to access the government’s business energy relief scheme, so any rise in duty would further compound the pressures they currently face in paying rising energy costs.”

A government spokesperson told ELN: “We have frozen alcohol duty for a further six months from April to reassure and provide certainty to distilleries and protect them from rising inflation. We have also cut their bills through our energy support package and a £2.4 billion fuel duty cut.

“Meanwhile our historic Alcohol Duty Review also means from August drinks will be taxed according to strength. The alcohol reforms will support pubs and help small producers to expand and thrive.”

Article source: https://www.energylivenews.com/2023/02/17/uk-whisky-distillers-left-out-in-the-cold/