First Minister John Swinney has called for a cut in spirits duty in next month’s Autumn Budget as Scotland’s whisky industry pushes for relief from rising domestic costs.
Swinney backed the call after meeting the Scotch Whisky Association’s Council of member companies and hearing directly from producers about the pressures facing the sector.
The SWA submitted its own Autumn Budget proposals to the Treasury earlier this week, calling on Chancellor John Healey to reduce excise duty on spirits.
Around 70% of UK spirits production takes place north of the border, while the association says drinks account for 38% of total profits within hospitality businesses.
The industry argues that the consequences of spirits taxation therefore extend well beyond distilleries, reaching farmers growing grain, businesses throughout the supply chain and the pubs, bars and restaurants selling whisky.
The SWA says Scotch whisky has faced more than six years of turbulence across international markets alongside increasing costs for producers and consumers at home.
It has described the current alcohol duty system as “a broken model for Scotland”, arguing that Scotch whisky and other spirits can be taxed at substantially higher rates than beer, cider and wine.
Excise duty on spirits has increased by 17% over the past three years, according to the association, which says Treasury revenues have fallen despite those increases.
The industry believes a duty reduction would provide producers with greater confidence to invest as improving access to major overseas markets creates new opportunities for growth.
Developments in the United States and India during 2026 have been welcomed by whisky producers, but the SWA argues that supportive domestic taxation is needed if Scotland is to take full advantage of those export opportunities.
First Minister John Swinney said:
“It was a pleasure to join the SWA for their Council discussions.
“Scotch Whisky is a cornerstone of Scotland’s culture, heritage, economy and global identity.
“This Government stands shoulder to shoulder with this industry, supporting thousands of jobs and standing proudly as a symbol of Scotland’s reputation around the world.
“Today I’ve heard directly from major producers to smaller distillers.
“It is clear that duty rises have placed undue pressure on the industry and I echo calls for the UK Government to address this unfairness.”
Scotch Whisky Association Chief Executive Mark Kent said:
“We are grateful for the support of the First Minister and his team in backing an iconic Scottish industry like Scotch Whisky, and its partners in Scotland from farmers to hospitality venues and tourism.
“We welcome their recognition that a cut to excise duty in the Autumn Budget would have a tangible impact on Scotch Whisky producers large and small by allowing them breathing room to look to the future, invest in innovation and expansion, and support jobs, something which can only help boost growth across Scotland and the wider UK.”
With the Autumn Budget approaching, the industry is now looking to the Chancellor for a change in direction after three years of rising spirits duty.
