Scotch Whisky Association Urges UK Chancellor to Freeze Spirits Duty
The Scotch Whisky Association SWA is strongly calling on the UK Chancellor to implement a multi-year freeze on spirits duty in the upcoming autumn budget. The industry body emphasizes that mounting regulatory costs, unstable global trade conditions, and the recent negative impact of tax increases on fiscal revenue and the hospitality sector are placing considerable pressure on the industry.
Tax increases over the past two years have significantly burdened the taxation on an average priced bottle of Scotch whisky, with duty now accounting for at least £12 per bottle sold in the UK. Despite this, SWA reports that excise duty revenue from spirits has not only stagnated but has also fallen £600 million short of Treasury expectations over the last two years.
The industry organisation also highlights the importance of spirits to the UK's hospitality sector. Spirits account for 15% of alcohol sales in pubs, bars, and restaurants but contribute 38% of their total profit from alcoholic beverages. This move aims to protect a vital revenue stream for the hospitality industry, which has already seen nearly 84,000 jobs lost since the last budget, according to research by UKHospitality.
Furthermore, the industry faces external pressures, including a 10% tariff from the United States, a measure that has cost the sector nearly £4 million per week. The dual blow of domestic tax and international tariffs has led to the loss of over 1,000 jobs in the past year alone.
SWA Chief Executive Mark Kent stated, "Scotch whisky is one of the UK's greatest global success stories, but the industry is at a crossroads, facing severe global pressures, and its roots in the UK urgently need strengthening." He urged the Chancellor to support Scotch whisky by implementing a multi-year duty freeze, which would not only help Scotch whisky producers navigate the turbulent global trading environment but also bring much-needed revenue growth to the hospitality sector and the Treasury. Kent added that the Chancellor should cease implementing damaging and counterproductive tax increases and show that the government supports Scotch whisky."
2025-10-20
Source: https://thewhiskeywash.com/whiskey-news/swa-urges-uk-chancellor-to-freeze-spirits-duty/