Concern for distillers following changes to alcohol tax

Changes to alcohol tax have left distillers across Scotland dismayed.

Following measures announced today, prices are set to increase for some spirits with potential reductions for draught beer.

Annan distiller Kit Curruthers said the last 24 hours had been stressful as he had to change how much his gin and rum costs.

Determined to keep his business afloat, he said: "We are having to put our prices up by 5% which is not as much as the duty rate has gone up. With mortgage rates increasing and general cost of living pretty high, we think our sales are going to go down."

Distillers are also working with their buyers to try to help give them the best possible price and still conform to the new regulations.

Mr Carruthers added: "One thing was to let our customers know our prices were going up so we gave them the opportunity to buy at the lower price before they went up today, we also took some stock out yesterday to avoid paying the extra today duty today and now are overall looking at reducing our costs for production."

He added: "I think the industry as a whole will survive, but it's whether the small producers are able to keep trading as they are."

Bar owners including Stephen Montgomery greeted today's news with mixed emotions as their industry continues to struggle during the cost of living crisis.

He said: "We see a big increase in our Scottish whisky when we go to buy those, spirits take a jump, some wines take a jump but then to balance it out, prosecco has taken a wee bit of a decrease."

Mr Montgomery believes the new measures will help those who drink non-alcoholic drinks and those with lower alcohol levels.

Alcohol counsellors are skeptical if the new taxes will help combat Scotland's addiction problem.

Alcohol counsellor Michael Hawthorne said: "I think this is nice in theory but when it comes to practice, people who have an alcohol issue or addiction or a dependency or whatever you want to call it are going to find a way to buy alcohol regardless."

Mental health experts believe the taxes may combat some drinking issues but there are other ways to help.

Mr Hawthorne said: "The additional tax will be good if they reinvest in a way that is going to help people."

Want a quick and expert briefing on the biggest news stories? Listen to our latest podcasts to find out What You Need To Know...