Scotch whisky is more than a national symbol – it is a cornerstone of the UK’s economy, a globally recognised export success, and a vital component in the country’s hospitality industry. As the government looks to drive economic growth and attract inward investment across the UK, supporting scotch whisky – one of Britain’s most iconic and globally competitive industries – should be a clear priority.
Economically, scotch whisky is a powerhouse. It is the UK’s largest food and drink export, worth £5.4bn annually, and shipped to over 160 markets. The industry supports around 66,000 jobs, many of them in rural parts of Scotland where scotch whisky is an economic linchpin, boosting productivity and tourism footfall. However, the industry’s extensive supply chain extends across the whole of the United Kingdom – from the farmers, maltsters and glass manufacturers right through to the pubs, bars and restaurants that rely on the industry.
Our new #IMakeWhisky campaign serves to highlight just a few of those faces from across every sector and corner of the UK that are behind the success of this iconic drink.
Spirits tax regime
But spirits face an unfair tax regime currently, particularly versus beer: this August marks two years since the duty system was reformed and the duty on spirits was raised by over 10%, with a further hike just 15 months later. Despite this, Treasury receipts have gone down, not up. And tax revenues from spirits sold in the on-trade represent a third of all serves poured, but from just 15% of all the alcohol units sold. This unfairness places a disproportionate burden on producers and consumers alike, and is compounding other pressures on hospitality businesses across the country.
Those who choose to enjoy scotch whisky as their alcoholic drink of choice are being penalised by successive governments’ failure to make our duty system fairer, despite multiple pledges to do just that. On top of all this, it’s clear that favouring the beer pumps at the front of the bar over the world-class spirits at the back does nothing to improve public health. A pint of beer, on average, has nearly twice as many calories, and contains twice the alcoholic units than a measure of scotch whisky. Where is the logic in offering a disproportionately favourable duty regime?
This autumn’s budget offers the government the perfect opportunity to harness the potential of the scotch industry – providing broader support for a strategic national asset, and supporting an industry that’s facing significant global headwinds with tariffs in the US compounding the pressures in the UK.
Support for scotch
There is widespread support for this – in a recent poll, almost 80% of Scottish voters thought there should be no further increase to tax on scotch whisky, with only a quarter of Scots believing their local MP is doing enough to support the industry.
There is real potential in the scotch industry, and producers want to continue sparking growth, providing skills and opportunities, and offering much-needed support for the UK’s hospitality industry. A fairer duty system would not only boost Treasury revenue but also strengthen a key UK export sector at a time of economic uncertainty.
Backing scotch isn’t about nostalgia – it’s about future-proofing one of the country’s most valuable and globally successful industries with a common-sense approach that can drive growth during a sluggish year. It’s time for the government to step up and harness its potential.
Mark Kent, CEO of SWA
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