A SPIRITED MOVE? CHAMPIONING A SPIRITS DUTY REDUCTION

The Scotch Whisky Association (SWA) propose that a reduction in the duty on Scotch Whisky (and other spirits) could bring in an extra £1.6 billion over five years. Their analysis argues that a 5% decrease in spirits duty would mean an additional £318 million a year for the Treasury.

The previous freezes on duty between 2018 and 2023 resulted in an extra £1.4 billion for the government according to the SWA. However, after a 10% duty increase for spirits in August, the Treasury reportedly lost £103 million in tax receipts due to increased costs for both trade and consumers.

With the above argument in mind, SWA is urging the government to consider a reduction in alcohol duty for the upcoming Spring Budget. The SWA argue that such a move would not only benefit public finances, but also provide support to consumers and pub owners. Currently, about three-quarters of the cost of a bottle of Scotch Whisky is attributed to taxes, making the UK’s excise duty the highest in the G7 and the fourth highest in Europe.

Mark Kent, Chief Executive of the Scotch Whisky Association, emphasises the positive impact of lowering spirits duty, describing it as a “win-win” situation that supports businesses, boosts government revenue, and aids in funding public services.