Scotch Whisky Association calls for spirits duty freeze as industry headwinds grow
The Scotch Whisky Association (SWA) has urged the UK Government to impose a multi-year freeze on spirits duty, warning that continued inaction threatens jobs, investment and Treasury revenues.
In a submission ahead of the autumn Budget, the trade body stated that recent duty increases had cost the Treasury £700m while placing a £12 tax burden on every bottle of Scotch sold in the UK.
The Association argued that duty freezes were needed to stabilise the sector, which had already lost more than 1,000 jobs in the past year.
The SWA said producers required long-term confidence to invest and expand.
The call comes as the industry faces ongoing global challenges, including 10 per cent US tariffs that are adding pressure to exports.
Damaging Scotch Whisky tax regime
The organisation also said the UK’s domestic duty regime was damaging the drinks industry and the wider hospitality sector, where spirits accounted for 38 per cent of alcohol profits despite only 15 per cent of drinks served.
It highlighted the importance of spirits sales to pubs, bars and restaurants already under pressure from inflation and weakened demand.
The SWA called on the Chancellor to follow through on prior commitments to support the sector.
It said the freeze should last for the remainder of the current parliament.
Scotch Whisky remains one of the UK’s most significant export products, accounting for 22 per cent of all food and drink exports and reaching over 180 countries.
The industry supports 41,000 jobs in Scotland and added more than £7bn in gross value added to the UK economy annually.
Tourism also plays a central role, with over 2.7m visitors attending Scotch Whisky centres each year.
“Scotch Whisky is one of the UK’s greatest global success stories, but the industry is at a crossroads,” said SWA chief executive Mark Kent.
“We are calling on the Chancellor to back Scotch with a multi-year duty freeze that will give producers the stability to invest, safeguard jobs, and continue delivering growth for the UK economy.”
“Our message is clear: now is the time for the government to match words with action.”
“A freeze on spirits duty will not only support Scotch whisky producers through a turbulent global trading environment but also provide a much-needed boost to hospitality and Treasury revenues.”
“The Chancellor has the opportunity to reverse a damaging trend and show that the UK truly backs Scotch.”