Will a New Government Raise a Glass to The Scotch Whisky Industry?

Whatever our political persuasion, we all have particular concerns with any party we vote for. Be it with reference to our children, mortgages, health or our jobs, a new party with new policies can bring hope, or hardship.

And for those working in the Scotch Whisky industry, hope is very much the order of the day. Having imposed a huge 10.1 percent excise duty increase on Scotch Whisky in August 2023, the government actually found that rather than raking in more coins for the treasury, they were actually worse off with a drop in tax revenue of almost ￡115 million.

But it’s just whisky…. will there really be much of a repercussion if tax isn’t reduced?

To answer that, let’s refer back to the mention of job security in our opening paragraph. There are 41,000 direct employment jobs in the Scotch Whisky industry and an additional 25,000 dotted across the UK. Then of course there are the supply chain jobs; bottlers, coopers, hauliers, farmers; the ripple effect is an ever-increasing circle.

We are involved in recently achieved and ongoing negotiations for global trade deals where Scotch is a major factor. And when you consider that this industry alone is responsible for generating ￡7.1 billion per annum to the UK economy, it will come as no surprise to discover that, when asked in a recent survey carried out by Survation of more than 2,000 Scottish residents, 85% believed the tax on whisky should be lowered or remain static, 86% thought the industry was important to the economy and 90% thought it was important to Scottish exports.

It's not just exports we need to consider

We’ve spoken of the production and export of Scotch and all the contributory factors, but what of the tourism aspect? More and more distilleries are building visitor centres and holding distillery tours.?There is a thirst for knowledge (pardon the pun!) regarding the making and history of whisky which draws people in from all parts of the globe, 2 million visitors per year in fact. So, when asked whether they felt that Scotch Whisky is important to Scottish Tourism, a whopping 91% of the Scots asked, agreed it is.

Mark Kent, Chief Executive of the Scotch Whisky Association, has stated:

“Scotch Whisky is a cornerstone of the Scottish economy. This poll shows that Scots recognise that, and want candidates across political parties to recognise it too. That means ruling out further increases in excise duty after last year’s devastating tax hike, which has ultimately cost the Treasury over ￡100m, money that could’ve been used to support public services.”

Will this new government listen?

The Scotch Whisky Association has been vocal about the need for industry recognition and support and with Whisky and other spirits being taxed up to four times the amounts levied on beer and cider, it’s time the powers that be finally show the spirit of camaraderie.

To that end, we look back at the visit of the now Prime Minister, Sir Kier Starmer to InchDairnie Distillery in Glenrothes, Fife last November.? During that visit Sir Kier was educated in the entire distillery process including the input from the supply chain.

This visit was hot on the heels of the Spring Budget at which the eyewatering 10.1% tax hike took place. His response to the ‘unforgivable’ trade strategy was that a government he leads would implement a strategy that would “back Scotch producers to the hilt.”? He continued by saying that “Scotch should be something we’re knocking back, not knocking down.”

And the Labour party manifesto clearly states:

“We will maximise Scotland’s influence using the UK’s footprint on the global stage to promote Scottish businesses, boost exports, and attract investment to create jobs.”

“A Labour government in Westminster will have Scotland at its heart, working to deliver the change our country needs.”

Well Sir Kier, the Scottish Whisky industry needs the tax levy changed, and the SWA have not been silent about it, let’s hope you’re as good as your word.