Craft distillers call for inclusion of spirits in Small Producer Relief

By Oliver Catchpole

Published: 04 November, 2025

An open letter calling upon the chancellor to extend UK Small Producer Relief (SPR) to spirits businesses has garnered the support of multiple small distilleries, including Elsham Wold Distillery, Wharf Distillery, Doghouse distillery and London Distilling Co.

The letter, which comes ahead of the Autumn Budget on 26 November. was released in a blog post authored by Liam Hirt (pictured), founder of Circumstance and Psychopomp Distilleries in Bristol.

It asks for a level playing field for distillers with brewers and cider makers.

Read more: Pub insolvencies on rise as cost pressures take toll

Currently SPR applies only to products under 8.5% ABV, which Hirt argued unfairly excludes small producers of gin, whisky, rum and other higher-strength drinks.

He claimed this undermines the scheme’s goal of supporting small businesses and innovation across the UK drinks industry.

Hirt commented: “Duty relief for beer and cider has proven its value. It has helped small producers compete with global corporations, encouraged hundreds of new entrants, and driven diversity and innovation. Extending the same support to spirits would deliver exactly the same benefits – and strengthen the UK’s position as a world leader in craft distilling.

“This limitation discriminates against distillers and contradicts the scheme’s intended purpose. There’s no public health basis for this exclusion. A unit of alcohol in a gin is no more harmful than a unit in a beer.

“A reformed, inclusive SPR could reverse this decline by encouraging investment, compliance, and sectoral growth – boosting long-term revenues for the Treasury.”

According to The Scotch Whisky Association (SWA), spirits sales now represent 38% of pub alcohol profits, despite a smaller share of total serves and over half of consumers report a preference for spirits when drinking out.

Hirt added that “premium and locally made spirits are key to pub profitability and consumer engagement.

“The UK’s duty framework should reward innovation, not penalise it. Including spirits in SPR would deliver fairness, drive exports, and strengthen the entire drinks ecosystem - from distilleries to pubs to the Treasury”.

The full list of co-signees on the open letter includes:

Liam Hirt – Circumstance Distillery

Richard Foster – Exploring Whisky

Shaun Watts – Ludlow Distillery

Paul Abbott – Grasmere Distillery

Jordan Lunn – West Midlands Distillery

Anthony Dillon – Spirit of Birmingham

Stephen Russel – Copper Rivet

Jordan Morris – Abingdon Distillery

Jared Cave – Integrity Malts

Ben Mordue – Elsham Wold Distillery

Laurence Coinsbee – Wharf Distillery