Scotch Whisky Association urges multi-year freeze on spirits duty ahead of autumn budget

The Scotch Whisky Association (SWA) has urged Chancellor Rachel Reeves to commit to a multi-year freeze on spirits duty in her upcoming autumn budget on 26 November, warning that rising taxes are crippling the sector and wider hospitality industry.

Mark Kent, Chief Executive of the SWA, said the Chancellor has “84 days to back Scotch” following the Treasury’s confirmation of the budget date.

“At her last Budget, the Chancellor chose to increase further the duty burden on an industry already weighed down by excessive tax and regulation,” Kent said. “Despite that decision, tax receipts have not gone up; and more UK pubs and restaurants have been forced to close. Everyone connected with hospitality knows that pubs, restaurants and other venues cannot survive on beer alone – all rely on spirits for profits.”

The SWA is calling for a freeze on spirits duty across the lifetime of this parliament, arguing that Scotch is at risk of falling further behind other alcohol categories. Kent said Reeves must ensure that the tax differential with beer and wine does not widen, leaving Scotch at a competitive disadvantage in both domestic and global markets.

The association stressed the importance of Scotch to the wider UK economy, pointing out that 70% of all UK spirits are produced in Scotland. A multi-year freeze, it said, would provide much-needed stability for producers and help sustain growth across the UK.

The appeal comes as pubs, bars and restaurants continue to grapple with high inflation, soaring costs and fragile consumer confidence. The SWA argues that a duty freeze would help relieve pressure on venues which depend on spirits for profitability, particularly as closures across the sector mount.

Kent concluded: “84 days. Back Scotch, support Scotland, and sustain growth across the UK.”

The Chancellor is under intense pressure ahead of her second budget, with a fiscal hole of up to £40bn to fill and speculation mounting over possible tax increases. Business groups and industry bodies are lobbying hard to avoid being hit with further rises, arguing that tax certainty and stability are critical for growth.

For Scotch producers, the coming weeks will reveal whether Reeves honours the Prime Minister’s promise to “back Scotch producers to the hilt” or maintains her stance on higher spirits duty.

Read more:
Scotch Whisky Association urges multi-year freeze on spirits duty ahead of autumn budget