Scotch Whisky industry welcomes extension of duty freeze

The Scotch Whisky Association (SWA) has welcomed today’s alcohol duty freeze, saying that the decision by the Chancellor to extend the duty freeze until February 2025 shows he has recognised that a rise in duty would be detrimental to the Scotch whisky industry and its supply chain, consumers and the wider economy at a time when the UK is still struggling to bring inflation down.  

In the Budget, the Chancellor announced a duty freeze across all four alcohol categories.  The duty rate on spirits remains at the current level of £31.64 per litre of pure alcohol, meaning that of the £15.63 average price of a bottle of Scotch Whisky, £11.40 is collected in taxation through duty and VAT – a tax burden of 73%.  

With confirmation that duty will not rise further in August, the Chancellor recognised that supporting Scotch Whisky boosts growth, increases revenue, and backs our iconic hospitality sector.  

While today’s announcement is a positive step, there continue to be great inequities when it comes to alcohol taxation in the UK. Scotch Whisky and spirits remain the highest taxed alcohol category in the UK. Longer term action is still needed to address the high tax burden on Scotch Whisky, which is taxed at a higher rate per unit of alcohol than wine, beer and cider, and faces the highest spirits duty rate among G7 nations, despite being a home-grown success story, made in Scotland and employing 67,000 people across the UK. The industry is also unable to access tax breaks available to other sectors through the so-called ‘Brexit Pubs Guarantee’ and small producer relief. 

Commenting on the Spring Budget, Chief Executive of the SWA Mark Kent said:  

“The industry welcomes the Chancellor’s recognition of the benefits of continuing the duty freezes beyond August this year. That decision supports the Scotch Whisky industry, will incentivise investment and, as with previous cuts and freezes, boost Treasury revenue. With cost pressures hurting our bars and pubs, not to mention hard pressed consumers, the Treasury has provided some much-needed certainty and stability for the year ahead.  

“Despite this freeze, Scotch Whisky is still put at a disadvantage by the duty system, based on a fundamental misunderstanding of how people consume alcohol and modern drinking trends. With today’s freeze cider is still taxed four times less than a spirit like Scotch Whisky and responsible consumers who enjoy a Scotch are paying too much tax compared with a beer or cider. Looking ahead, we will continue to work with the UK Government to ensure that our tax system is supporting the long-term success and prosperity of our iconic homegrown sectors such as Scotch Whisky, so that Scotch and other high-quality spirits are not put at a competitive disadvantage in the UK and other markets around the world.” 

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Despite this freeze, Scotch Whisky is still put at a disadvantage by the duty system, based on a fundamental misunderstanding of how people consume alcohol and modern drinking trends.

--- Mark Kent, SWA CEO

Want to learn more about how the Scotch Whisky industry is engaging with government?

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