Industry stakeholders leaders urge fairer tax treatment of Scotch Whisky

With excise duty on alcohol rising by 3.66% on 1st February, business leaders and industry stakeholders have urged for fair treatment of spirits when it comes to UK taxation, highlighting this year’s scheduled duty review as an opportunity for the government to address the imbalance amid significant domestic and international pressure on the Scotch Whisky sector. 

Charandeep Singh, Chief Executive of the Scottish Chambers of Commerce, said: “The success and prosperity of many sectors across Scotland’s economy depend on that of the Scotch Whisky industry — from the farmers who grow the grain to the bars, pubs and restaurants who serve the finished product. Today’s rise in excise duty will increase costs for businesses across that supply chain, all of which are already under significant pressure. It’s important that government listens to the concerns of the businesses behind Scotland’s national drink and creates a domestic environment that supports, rather than limits, their ambitions for growth.” 

Wendy Chamberlain, MP for North East Fife and Chair of the Scotch Whisky All Party Parliamentary Group said: “It’s clear that today’s rise in duty – the third in less than three years – doesn’t just hit distillers, but the economies and communities across Scotland that they support through jobs, investment and tourism. With over 70% of UK spirits produced in Scotland, the spirits duty rise also disproportionately impacts businesses here, from the Central Belt to the Highlands and Islands. It’s vital that the UK government uses this year’s excise duty review as an opportunity to support Scotch Whisky producers with a fair and balanced tax system, which in turn will boost growth and prosperity for communities throughout Scotland.”  

Ian Palmer, founder of InchDairnie Distillery in Fife, Chairman of InchDairnie Whisky Co, and SWA Council representative, said: “Businesses like mine need fairness and breathing space here at home to be able to weather significant challenges in our international markets. Investing in expansion and employment for the long term requires stability right now, not crippling tax rises that go up indiscriminately every year, severely impacting our confidence and plans for the future. Distillers need to know the government’s domestic agenda is on their side, which will enable us to take full advantage of the international export opportunities on the horizon.” 

Mark Kent, Chief Executive of the SWA said: “February 1st sees the increase of 3.66% in excise duty on every bottle of Scotch Whisky come into effect – a cumulative increase of 18% in less than three years. That means that the total tax on an average bottle of Scotch has gone from £10.58 in 2023, to £12.45 today. 

 “Our sector has warned that repeatedly raising excise duty leads to stifled growth, and we are seeing that come to pass, not just for Scotch Whisky producers, but for the wider supply chain and hospitality sector. Continually pushing up spirits duty also costs the public purse, as evidenced by the OBR downgrading its own spirits receipts forecast by over £600m late last year. 

“Distillers need domestic support and stability to help weather the headwinds we are seeing in key global markets, and fair tax here at home is in the government’s gift to deliver. This year’s review of excise duty is an opportunity for the government to provide that stability, with a fair duty system that does not punish spirits producers but supports their ambitions for growth and investment.” 

Tax on whisky rose by 3.66% RPI, as announced in the Autumn Budget on 26th November 2025 

Spirits duty rose by 10.1% in the 2023 Budget, and 3.65% in the 2024 Budget. 

As of 1st February 2026, the total tax burden on a 70cl bottle of Scotch Whisky is now 71%, amounting to £12.45