The SNP has accused the UK Government of damaging Scotland’s whisky industry after new figures showed a £156 million drop in alcohol duty revenue following a Treasury duty increase.
Data covering April to October 2025 shows £2,156,000,000 was collected in alcohol duty on spirits, a fall of £156 million or 7 per cent compared with the same period in 2024.
The figures have reignited political debate over the impact of the UK Government’s alcohol duty policy on Scotch whisky producers and wider public finances.
The duty increase was introduced following the Labour Government’s first budget after the 2024 general election.
Before entering government, Prime Minister Keir Starmer pledged he would back Scotch whisky producers strongly.
However the industry had warned that increasing duty would push prices higher and reduce sales.
Scotland’s whisky sector has repeatedly argued that the tax places pressure on distilleries while also reducing the amount of revenue the Treasury ultimately collects.
The data now being cited by critics suggests that lower sales may already be affecting the amount of duty being returned to the public purse.
Speyside MP Graham Leadbitter said the figures show the policy is harming both the industry and government revenues.
“Labour’s tax on Scotland’s whisky is yet another broken promise from the Labour Party and all the evidence suggests it is completely pointless too with less money brought in to the public purse.
“The Labour Party need to be asked this simple question: if it’s harming sales and losing tax revenues, then what is the point of this disastrous tax on Scotland’s whisky?
“The Labour Party has betrayed the industry and in the face of clear evidence, Keir Starmer must now do the right thing and scrap Labour’s unfair tax on Scotland’s whisky.
“Time and again, Scotland’s premier industries from energy to whisky are treated as a cash cow by Westminster and it’s Scottish workers that pay the price.
“Through a fresh start with independence, Scotland’s thriving whisky sector would be treated as a priority, not an afterthought, in our trade negotiations as we encourage our world class product to thrive.”
The Scotch Whisky Association has previously warned that frequent increases in duty risk damaging one of Scotland’s most internationally recognised industries.
Scotch whisky remains one of the United Kingdom’s largest food and drink exports, supporting thousands of jobs across distilling, farming, logistics and tourism.
Distilleries across the Highlands, Speyside and the islands form the backbone of many rural communities where the sector is both an economic driver and a cultural symbol.
Industry groups have consistently argued that stable and supportive tax policy is essential if the sector is to continue growing its global market share.
The debate over alcohol duty is expected to continue as the Treasury reviews tax revenues and industry performance during the coming financial year.
