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Chatham's Copper Rivet Distillery boss says Treasury 'has vendetta' against spirits manufacturers

The owner of an award-winning gin distillery says they are being unfairly taxed and the Treasury "has a vendetta" against their sector.

With inflation predicted to peak at 11%, Stephen Russell, from Copper Rivet Distillery in Chatham, said it is a terrifying prospect for businesses.

Stephen Russell, founder of Copper Rivet Distillery, in Chatham. Picture: Stephen Russell
Stephen Russell, founder of Copper Rivet Distillery, in Chatham. Picture: Stephen Russell

The spirits producer was one of many to meet with MPs when the UK Spirits Alliance hosted a virtual round table.

Business owners highlighted their current challenges, such as the cost of living crisis and how it is exacerbated by an "unfair" tax system, which currently sees bottles of spirits taxed at 70% via excise duty.

Stephen said other drinks sectors, such as wine, beer, and cider producers, get treated differently in comparison to spirits manufacturers.

He added: "The Treasury seems to have a vendetta against craft spirits producers because while they announced they would support English wineries, breweries and cideries, they completely missed out on craft spirits producers. They don’t seem to have any evidence for their decision making.

"One of the reasons given seemed to relate to public health concerns. They say spirits can contribute to alcoholism due to their alcohol strength.

"But the truth is they're not able to provide any evidence to support the claim that spirits are worse than wine, beer or cider."

Stephen says spirits producers like him are unfairly taxed. Picture: Steve Crispe
Stephen says spirits producers like him are unfairly taxed. Picture: Steve Crispe

The gin distillery boss added inflation could be another obstacle added to his list, especially if it does rise to 11%.

He said: "It is very worrying.We are one of the very few in the market who have not raised our prices. and the reason for that is that we always wanted to position ourselves as an affordable luxury. And we’ve been working really hard, hoping this doesn’t go on forever, and try to absorb some of that inflation.

"With the cost of living crisis, my hope is that people do still reach for us as an affordable luxury as their choice for a special occasion. But we’ve got to be realistic that things are getting very expensive and people’s disposable income is being squeezed.

"So that is a little bit terrifying. We don’t know for how long we’ll be able to keep holding our prices."

Kelly Tolhurst MP represents Rochester and Strood. Picture: UK Gov
Kelly Tolhurst MP represents Rochester and Strood. Picture: UK Gov

At the event, the founder of Copper Rivet Distillery had the chance to address his concerns to the office of Kelly Tolhurst MP.

She said: "My representative thoroughly enjoyed the virtual round table which gave Parliamentarians the opportunity to discuss various issues with distillers, who are producing spirits that capture the essence of the UK.

"UK spirits is a British success story creating jobs, investment, and economic growth across all four corners of the UK, including in my constituency of Rochester and Strood.

"I want to see the Government support spirits producers like Stephen in my constituency, as the Treasury looks to reform the way alcohol is taxed."

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