Two thirds of Londoners have cut down on trips to the pub because of price hikes, a poll revealed on Tuesday.
Distillery owners are warning “gin-flation” could put some independent companies out of business as the cost of producing spirits soars.
They have urged Chancellor Jeremy Hunt to slash alcohol duty in Wednesday’s budget.
Peter Monks, owner of Shakespeare Distillery in Stratford Upon Avon and UK Spirits Alliance spokesman, said: “It’s been a difficult few years grappling with Covid, spiraling costs and a cost of living crisis, and we’ve now been hit hard by the duty rise that came into effect on August 1.
“It’s driving up the price of our spirits, harming the valued hospitality venues we supply, and is effectively an unfair tax on consumers who want to support their local distillery, and indeed local hospitality venues.”
Between July and December inflation in the price of spirits almost doubled, going from 5 per cent in July to 8.9 per cent in December.
Some 65 per cent of Londoners have reduced the number of times they eat or drink out due to affordability, a survey by Survation showed. This is 10 per cent higher than the national figure. One in ten people in the capital said they do not go out to eat or drink at all.
Mr Monks added: “The current level of duty is unsustainable, and we call for a cut to duty at the Budget. If it is not cut, we will continue to see rising prices and struggle amid a difficult economic climate.
“I’m just one of hundreds of distillers across the country who are worried for their future.”
In last year’s budget, Mr Hunt announced there would be no changes to alcohol duties until August.
He also reduced tax on a pint of five per cent lager from 54p to 51p, but spirit duty was frozen.
