Whisky and gin makers have told the UK Press Association that the UK government’s “disastrous” 10.1% increase in alcohol duty has “sucked the life out of a boom industry” one year on from its introduction.

The UK government’s alcohol duty hikes in August last year were the largest in almost 50 years, adding 20% to excise duty on more than 85% of all wines on the UK market and 10.1% to duty paid on full strength spirits.

According to ONS data, the average price of a bottle of red wine is up 8% to £7.85 on last year, while a bottle of gin is up 6% to £17.11 and fortified wine has risen by 17% to £11.67.

Gin and whisky producers said the industry was a boom sector until being hit with the triple whammy of Covid, the cost of business and then the increase in excise duty.

They say the duty increase has led to £132 million less revenue for the UK Treasury, according to the government’s own receipts, while 70% of distilleries in the UK fear for their ability to invest in their business as a result of the increase.

Scotch Whisky Association CEO Mark Kent said: “A year on and it’s clear the 10.1% hike in excise duty on Scotch Whisky has been a disaster.

“It’s hurt business and penalised consumers. Most crucially for Rachel Reeves, duty revenue to the Treasury is down £132 million – money that could and should have been available to support public services.

“The Chancellor has the opportunity to get back on track in the Budget on October 30.

“She should reduce the tax burden and, in doing so, reverse the impact of the biggest tax increase on spirits in 40 years, generate more revenue for the public finances, and back growth.

“She should back Scotland and back Scotch producers to the hilt, as the Prime Minister has promised to do.”

Neema Rai, the owner of London’s Tamesis Dock pub and spokeswoman for the UK Spirits Alliance, said: “The previous Chancellor’s alcohol duty hike saw the Treasury lose money. The new Chancellor has a choice. She must be bold and back spirits.

“Pubs are more than just pints, we need to be proud of our heritage and back our gins, whiskys, craft distillers and cocktail creators. Cutting alcohol duty in the Budget will ensure pubs can survive and help customers in a cost-of-living crisis.”