Spirits surge

Beer knocked from number two spot

TAX receipts from spirits sales have nosed ahead of revenue raised from beer duty for the first time ever, according to the latest figures from HMRC.

The WSTA credited the rapid growth of gin with driving spirits sales skywards.

Revenue and Customs receipts for the 2016/17 tax year reveal spirits duty brought £3.38bn into the state’s coffers, marginally ahead of beer duty on £3.32bn.

In a year which saw total tax revenue from alcohol duty rise by 4.4% to a total of £11.12bn, spirits was the shining star, with only wine in front.

Much of the credit for the spirits surge should go to gin producers, the Wine and Spirit Trade Association said, with the so-called ‘gin boom’ driving the category forward.


The WSTA found gin sales have surged by 12% over the last year, giving the sub-category the fastest growth rate of any spirit drink according to the group’s latest market report.

Miles Beale, chief executive of the WSTA, said: “The WSTA dubbed 2016 the year of gin and the gin boom has had a large part to play in the windfall now being enjoyed by the Treasury.

“The 7% increase on revenue takings came as a result of the Chancellor freezing spirit duty in 2016 and allowing the industry to grow and invest.
“It proves the point that cutting or freezing spirits duty brings rewards.”