Scottish hospitality coalition urges chancellor to protect whisky industry

"The grouping, which includes the Scottish arms of the National Farmers' Union, the Institute of Directors and UKHospitality, has written to Rachel Reeves to argue that a freeze in duty would be a strategic investment that could increase tax revenues. They said recent rises in spirits duty had taken the overall tax paid on the average bottle of whisky to at least 12, or 70% of the retail price, contributing to about 1,000 redundancies in whisky production since last year's budget, when spirits duty rose."

"The current duty regime, combined with wider economic headwinds, is placing significant strain on both producers and venues, the joint letter said. Some businesses are halting investment or looking abroad, while others are being forced to cut jobs. For many of the UK's most iconic products, this is an alarming trend. The signatories, which included the Scottish Grocers' Federation, the Night Time Industries Association and Scottish Chambers of Commerce, said they represented thousands of bars, restaurants"

"They calculate that spirits sales generate 38% of the hospitality sector's profits, despite being only 15% of their sales by units of alcohol. Data from International Wine and Spirit Research found whisky sales in the UK fell by 4.3m bottles in 2024 compared with 2023. Their appeal to the chancellor is designed to bolster a campaign by the Scotch Whisky Association (SWA), the sector's trade body, for a freeze on the duty until 2029 a proposal that would reduce the Treasury's options in future."

A coalition of drinks, tourism and farming organisations urged a freeze in spirits duty to protect the Scottish whisky industry from steeper sales declines and job losses. Members include Scottish farmers, business and hospitality bodies. Recent rises pushed tax on the average bottle to at least 12, about 70% of retail price, contributing to roughly 1,000 redundancies since last year's budget. The duty regime and economic headwinds are straining producers and venues, halting investment and prompting some firms to look abroad. Spirits account for 38% of hospitality profits but only 15% of sales by alcohol units. Whisky sales fell by 4.3m bottles in 2024 versus 2023. The coalition backs a duty freeze through 2029.

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