Simon Litherland, the UK managing director of Diageo, has warned that further duty rises could threaten investment and jobs.
He said the sector had already been hit too hard and it would be, “foolish to take any action which might prevent one of the country’s most successful industries playing a part in the recovery.”
Litherland told The Times that the 5% hike expected this week under the existing duty escalator system, which imposes rises of 2%, would be difficult to justify – especially after the industry had been hit by three duty increases and one VAT hike in the past two years, pushing duty on spirits up by more than 15% and duty on wine by 20%.
He added “Coming from outside the UK, it frankly puzzles me that an industry which contributes so greatly to the national economy is continually punished rather than nurtured.”
