15 October 2025
SWA CALLS FOR MULTI-YEAR FREEZE ON SPIRITS DUTY AS GLOBAL UNCERTAINTY AND DOMESTIC PRESSURES HIT INDUSTRY
- Rises over the last two years mean a minimum £12 of every bottle of Scotch Whisky sold in the UK is tax
- In the past two years excise duty from spirits has flatlined and fallen £600m short of Treasury forecasts. Scotch Whisky producers are calling for a multi-year freeze to spirits duty to ensure industry stability and confidence
- With pubs, bars and restaurants relying on spirits for 38% of their alcohol profits, now is the time for the Chancellor to back Scotch and the growth it delivers.
The Scotch Whisky Association (SWA) is today urging the Chancellor to deliver a multi-year freeze on spirits duty in next month’s Autumn Budget, as the industry faces mounting regulatory and taxation costs at home and unstable global trading conditions.
The SWA highlights the importance of spirits to the UK’s struggling hospitality sector. Spirits account for just 15% of alcohol serves, but generate 38% of on-trade alcohol profits. Rising duty threatens to weaken this vital income stream for pubs, bars and restaurants already under severe pressure, highlighted by recent UKHospitality research showing nearly 84,000 hospitality jobs have been lost since the last Budget
The SWA also highlight that excise duty increases of 14% over the past two years has seen the tax burden on a bottle of Scotch rise above a minimum of £12 for the first time. With £7 in £10 of the average priced bottle of Scotch claimed in tax. Despite that tax increase Treasury revenues have fallen by £700 million.
The call also comes as the UK’s iconic Scotch Whisky sector grapples with 10% US tariffs - costing nearly £4 million every week – that, alongside a domestic duty regime, has seen more than 1,000 jobs lost across the industry in the past year alone.
Commenting on the industry’s ask ahead of the Budget, Scotch Whisky Association Chief Executive Mark Kent said: “Scotch Whisky is one of the UK’s greatest global success stories, but the industry is at a crossroads as it faces significant global pressure now and its foundations here at home in the UK need underpinned.
“We are calling on the Chancellor to back Scotch with a multi-year duty freeze. 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 should step away from damaging counterproductive duty rises and show that the government backs Scotch.”
ENDS
Notes to Editors
Scotch Whisky plays a vital role across the UK economy:
- 41,000 jobs are supported by the industry in Scotland alone, with a further tens of thousands across the supply chain.
- The sector contributes more than £7 billion in Gross Value Added (GVA) each year.
- Scotch accounts for 22% of the UK’s total food and drink exports, reaching markets in over 180 countries.
- More than 2.7 million tourists visit Scotch Whisky visitor centres annually, boosting local economies and hospitality.
Read the SWA's Budget submission here
