Whisky association urges duty cut after revenue loss
The Scotch Whisky Association (SWA) is urging the next government to reverse the damage caused by Jeremy Hunt’s 10% increase in spirits excise duty. Newly published figures from HMRC reveal that the Treasury has lost more than £100m since the tax hike last August.
According to the data, duty revenue from spirits fell by £108m from August 2023 to May 2024 compared to the same period the previous year.
The August hike was the largest such tax rise in over 40 years, making the UK’s duty on Scotch and other spirits the highest in the G7 and double that of France. Nearly three-quarters of the cost of a bottle of Scotch is now claimed by the taxman. Spirits also account for a third of all alcohol sales in pubs, restaurants and bars.
The SWA is calling on the next government to halt any further duty increases and to work towards aligning excise duty on Scotch with the European average over the next parliamentary term.
Graeme Littlejohn, director of strategy and communications at the SWA, responded to the HMRC figures: “Month by month, it becomes more clear that the double-digit tax hike on Scotch Whisky and other spirits has backfired. It slowed the fall of inflation and has reduced revenue by over £100 million.
“With all political parties focused on growth in this election campaign, the first budget of the new Parliament should start to unwind this damaging tax increase and reduce the tax burden on Scotland’s national drink.”
The SWA highlights that in the UK, tax accounts for around three-quarters of the price of a bottle of Scotch, making it a critical issue for the industry and its economic contributions.
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