The Scotch Whisky Association (SWA) said the UK Chancellor’s decision to further increase alcohol duty on Scotch will put “additional pressure on a sector suffering job losses, stalled investment and business closures.”

The SWA had called on the Chancellor to freeze duty “to support jobs, investment and growth.”

The UK Government’s decision to raise alcohol duty in line with RPI from February 1, 2026, has ignited fierce reaction across the drinks sector.

Scotch Whisky is the UK’s leading food and drink export — yet over two thirds of the price of a bottle of Scotch is collected in tax by the UK government.

The SWA said: “Revenue from spirits revenue has fallen since the previous 3.6% increase to spirits duty last year, reducing revenue by 7% compared to 2024/25, or £150m.

“The OBR has confirmed that due to ‘weak in-year data’ the forecast for alcohol revenue has been downgraded by an average of £1.7bn each year – confirming that the high tax burden on Scotch Whisky is stifling economic growth and revenue generation.”

Scotch Whisky Association CEO Mark Kent said: “The Scotch Whisky industry is disappointed that the domestic tax burden has once again increased in the Autumn Budget, putting huge additional pressure on a sector suffering job losses, stalled investment and business closures.

“Put simply, the government cannot expect the Scotch Whisky sector to just keep delivering growth, both at home and on the world stage, if the conditions which support growth are not nurtured.

“The previous 3.65% increase to spirits duty has reduced spirits revenue by 7% – a loss to the Treasury of  £150m. Hiking duty today, for the third time in two years, not only limits our sector’s ability to contribute to much needed economic growth and productivity, but will once again fail to deliver for the public purse and needlessly cost jobs.

“Increasing global and domestic pressures led our industry to ask for duty in our home market to remain unchanged. Not a tax cut, not a handout, simply breathing room for a critical Scottish industry.

“Government has chosen to ignore those warnings, to the detriment of distillers, of bars and restaurants, our farmers and suppliers, and ultimately of growth.”