The Scotch Whisky industry warns the Chancellor’s announcement of a fourth consecutive rise on spirits duty will harm the sector, supply chains and consumers.
Duty on spirits such as Scotch Whisky has risen by 24% since 2023, placing further pressure on distillers and the wider supply chain. Following the Chancellor’s latest announcement, the total tax burden on Scotch Whisky has increased from 72% to 74% of the average retail price, meaning almost three-quarters of what consumers pay goes to tax.
The latest increase means £12.84 of the average price of a bottle of Scotch Whisky will now be taken in tax, including £9.95 in excise duty alone on every bottle. The industry warns that continued increases risk adding to costs for businesses and consumers, while putting further pressure on investment, growth and the communities that depend on the Scotch Whisky sector.
Mark Kent, Chief Executive of the SWA said: “Today’s spirits duty increase announced by the Chancellor is a disappointing blow to the Scotch Whisky sector, its supply chain and the local communities it supports.
“Another duty increase – the fourth in as many years – will see the tax burden on the average bottle of Scotch Whisky rise to 74%. Further support has been offered to small brewers and cider makers, excluding small producers in the spirits sector which is hugely important to the Scottish economy. The fact remains that consumers who don’t choose to drink pints – and the hospitality businesses who rely on spirits as part of a diverse and modern offering – are being unfairly penalised.
“We’ve repeatedly warned that increasing the spirits super tax will not only pile further costs on distillers, but will harm the supply chain and reduce Treasury revenue. Nobody wins when hard-pressed businesses are taxed to the hilt.
“The UK Government should listen to business and pay attention to the evidence. We will fully consider the findings of the evaluation report published today and press the Treasury for systemic reform to provide greater fairness for Scotch Whisky. Today’s decision to increase duty, alongside the inherent imbalance at the heart of the current duty system, puts further pressure on the sector, stalls investment and ultimately limits our ability to generate growth.”