The Scotch Whisky Association (SWA) has warned that the UK Chancellor’s announcement of a fourth consecutive rise on spirits duty will “harm the sector, supply chains and consumers.”

Scotch Whisky Association CEO Mark Kent said: “Today’s spirits duty increase announced by the Chancellor is a disappointing blow to the Scotch Whisky sector, its supply chain and the local communities it supports.

“Another duty increase – the fourth in as many years – will see the tax burden on the average bottle of Scotch Whisky rise to 74%.

“Further support has been offered to small brewers and cider makers, excluding small producers in the spirits sector which is hugely important to the Scottish economy.

“The fact remains that consumers who don’t choose to drink pints – and the hospitality businesses who rely on spirits as part of a diverse and modern offering – are being unfairly penalised.

“We’ve repeatedly warned that increasing the spirits super tax will not only pile further costs on distillers, but will harm the supply chain and reduce Treasury revenue. Nobody wins when hard-pressed businesses are taxed to the hilt.

“The UK Government should listen to business and pay attention to the evidence.”

In 2025, Scotch Whisky exports were worth £5.36 billion, accounting for 72% of Scottish food and drink exports and 21% of all UK food and drink exports.

More than 41,000 people are supported by the Scotch Whisky industry in Scotland and a further 25,000 across the UK. Scotch Whisky’s contribution to the UK economy reached £7.1 billion in 2022.

Kent added: “We will fully consider the findings of the evaluation report published today and press the Treasury for systemic reform to provide greater fairness for Scotch Whisky.

“Today’s decision to increase duty, alongside the inherent imbalance at the heart of the current duty system, puts further pressure on the sector, stalls investment and ultimately limits our ability to generate growth.”