SWA highlights daily loss for HMRC of £500,000 duty

By Hamish Graham

Published: 14 January, 2025

SWA chief executive has claimed the industry is “not crying wolf” over the impact of the double-digit rise in spirit duty since August 2023. According to Treasury figures, the revenue from spirits duty fell by £255m for the period running 1 August 2023 to 30 November 2024, which equates to an eye-watering half a million-pound loss in revenue every day for HMRC.

The body, which represents 95% of the Scotch whisky industry, believes the further 3.65% increase in spirt duty on 1 February next month will further squeeze revenues. Mark Kent, chief executive of SWA, laments the changes:

“Yet again the industry has been proved right about how hiking tax rates leads to less revenue and stalls growth. We are not crying wolf – HM Treasury needs to understand that even this resilient industry cannot be stretched beyond breaking point. In these new HMRC spirits duty figures, there is no sign of forestalling since the latest duty increase was announced on 30 October. There is just more evidence of an industry which is already overtaxed by the UK government.”

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The increase in duty has inevitably been passed onto consumers with £12 being the average tax burden per bottle of Scotch. The trade body hopes that the government heeds the Prime Minister’s own words to “back Scotch producers to the hilt” and change direction on the tax rises:

“The industry is resilient but faces headwinds at home and overseas. The one lever which the UK government directly controls is the rate of excise duty, where support can make all the difference in deciding to invest in the UK, creating jobs and boosting our domestic supply chain. The UK government should commit to supporting the industry, and not further raising duty on Scotch Whisky over this Parliament.”

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