Scotch: 75% of producers deferring investment due to high duty

By Hamish Graham

Published: 04 July, 2025

A new survey from the Scotch Whisky Association (SWA) can reveal that three out of four whisky companies expect to defer investment (or invest outside of the UK) due to the high tax burden upon them.

The research, conducted between February and June of this year, also highlighted that one in four producers expect to make job cuts due to the confluence of a number of economic headwinds.

Additionally, 76% of businesses believe an increase in duty would make them less likely to take forward capital investment and recruitment.

Read more: Diageo GB announces festivals partnership

Following March 2023’s 10.1% rise in alcohol duty, as well as the 3.65% increase seen in last October’s Budget, 87% of survey respondents expressed concern that duty would once again rise in the coming Autumn Budget.

Mark Kent, chief executive of SWA, believes Scotch whisky’s sustained contribution to the UK economy needs to be respected by the current government.

He said: “The Scotch whisky industry has a long track record of investment and growth that has benefitted communities across Scotland and the supply chain across the UK. It is also an optimistic and confident sector that believes in creating future growth.

“However, the positivity of the industry is being severely tested by the relentless impact of domestic policies and global circumstances.

“The industry is facing the significant challenge of US tariffs and increasing domestic pressures at a time it would otherwise be looking to support the Prime Minister’s growth mission. This high tax burden is not delivering the expected additional revenue for the Government, but it is costing jobs and investment.

“At a time when the country needs economic growth, we cannot fail to back one of the UK’s longstanding successes.”

Printer friendly version