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UK Scotch whisky volumes up 2%
Government figures show that the number of bottles of Scotch released for sale in the UK increased by 2% in 2015, but more support is needed if the industry is to thrive, says the SWA.
UK Scotch bottle sales increased 2% in 2015, according to HMRC figures released by the SWA
HM Revenue & Customs data, released by the SWA, show that 84.9 million bottles were available for purchase in the UK in 2015, up from 83.3 million the previous year.
The moderate volume increase follows years of decline, with the for-sale bottle count falling by around a quarter in the last 10 years.
In 2005, more than 107 million bottles were sold, but volumes have never exceeded 100 million in a single year since 2008.
The publication of the figures comes as the SWA ramps up its campaign calling for the UK government to cut spirits duty by 2% in the upcoming Budget Statement.
According to the trade association, last year’s 2% excise cut, following on from the scrapping of the alcohol escalator in 2014, has given the industry a “confidence boost”.
In addition, the SWA calculates that the cut boosted Treasury coffers by £102 million in revenue receipts from spirits.
However it says the current level of tax, which stands at 76% with excise and VAT, is too high, and is calling for a “Fair Tax for Whisky”.
“A strong UK market is vital, particularly for new entrants to the industry,” said David Frost, Scotch Whisky Association chief executive.
“In the last two years, nine new distilleries have started production in Scotland and they need a strong domestic base to grow from. The UK is still the third biggest market for Scotch in the world, but it is fragile and competitive. That’s why we want Chancellor George Osborne to support an important domestic industry by cutting duty by a further 2% next month.
“The tax treatment of Scotch in its home market also has repercussions for our export performance. If overseas governments see Scotch being treated unfairly in the UK that could influence their decisions. This makes it harder to ensure a level playing field for Scotch overseas. With Scotch now the biggest net contributor to UK trade in goods, it is important the Chancellor acts to support distillers and therefore the wider economy.”