The Scotch Whisky Association (SWA) said the UK Treasury has lost out on half a million pounds a day in tax revenue since excise duty on Scotch Whisky and other spirits was increased by 10.1% in August 2023, according to the latest HMRC figures.

HMRC data shows revenue from spirits duty fell by £255 million between August 1, 2023, and November 30, 2024, when compared to the same period the previous year.

“The latest figures from November 2024 show a further 3.6% fall in spirits revenue compared to November 2023,” said the SWA.

“This fall came after the UK Government’s decision to further increase duty by 3.65% in the Budget on 30 October.

“This tax hike will come into force on 1 February – but the industry is warning the latest revenue figures show a sector overburdened by tax even before the latest increase has filtered through to consumers who will pay at least £12 of tax on every bottle of Scotch Whisky. ”

Scotch Whisky Association CEO Mark Ken said: “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.

“Consumers cannot continue to bear the cost of one of the highest duty rates on Scotch Whisky in the world, which will get worse in three weeks when the latest duty hike announced by the Chancellor comes into effect.

“The commitment made by the Prime Minister to ‘back Scotch producers to the hilt’ was broken by the decision to further increase duty on the industry. These new figures are just the latest evidence that was a misstep, just as the 10.1% increase by the previous government was – something Ministers in that government now admit.

“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.”

The Scotch Whisky Association is the trade association representing 95% of the Scotch Whisky industry.

There are 151 operating Scotch Whisky distilleries in Scotland, supporting 41,000 jobs directly and 25,000 more across the UK. The industry generates £7.1 billion a year in gross added value to the UK economy.