SWA uses Burns Night as platform to call for duty cut

As drams are raised to one of Scotland’s most revered literary figures today, the Scotch Whisky Association has joined calls for a 2% cut to Scotch whisky duty in the UK.

The Scotch Whisky Association is using Burns Night as a platform to join the campaign calling for a reduction in Scotch whisky duty

At the same time, the Department for Environment Food & Rural Affairs (DEFRA) has revealed new statistics showing that Scotch whisky, gin and beer sales are on track to generate a £2.9 billion (US$3.6bn) boost for the UK economy.

DEFRA states that exports of gin were worth nearly £400 million between January and October, an 11% increase on 2015, while total UK gin sales broke the £1 billion mark last year.

Demand for Scotch whisky continues to rise, with almost 900 million bottles exported between January and September last year – an increase of 3% on 2015.

The Scotch Whisky Association (SWA) expects seven new whisky distilleries to open in Scotland this year.

As such, the SWA is now joining the Wine and Spirit Trade Association (WSTA) to call for a 2% cut in Scotch whisky duty ahead of the Budget Statement in March. The trade body claims that an “onerous” 77% tax on the average bottle of Scotch still exists despite last year’s duty freeze and a 2% tax reduction in 2015.

“[O]ur research published today emphasises the value of the industry which adds £5bn to the economy annually and supports more than 40,000 jobs,” said Julie Hesketh-Laird, acting chief executive of the SWA. “Burns Night is the perfect time to raise a dram to the success of Scotch. But we are calling on the government to ‘Stand up for Scotch’ by addressing the high and unfair level of taxation distillers face in their home market.

“The current tax of 77% on an average priced bottle of Scotch is a burden on consumers and the industry. And the government’s own figures indicate that fairer tax treatment leads to increased revenue for the public purse.

“We are calling on the UK Government to cut excise by 2% in next month’s Budget, supporting a great Scottish and British industry at a time of uncertainty, giving us a stronger domestic platform from which to invest and grow to make a success of Brexit.”

Government links

The UK Government is aiming to forge stronger economic links with key countries around the world over the next five years, opening up new markets and helping exporters to bring a £2.9 billion boost to the UK economy.

In the US and Canada, DEFRA is targeting an extra £579 million in exports over the next five years. The government is also aiming for a £215 million export boost in Mexico and Latin America through growing demand for British products, including gin.

Environment secretary Andrea Leadsom said: “Scotch whisky is a driving force of the UK food and drink industry, accounting for nearly one-quarter of all our food and drink exports each year. It’s fantastic other businesses are following suit and exporting around the world.”

David Mundell, secretary of state for Scotland, added: “Whisky is a vital part of any Burns Night celebration – and these statistics show the industry is going from strength to strength.

“They also show the growing thirst for other fantastic Scottish drinks such as gin and craft beer, which have seen business booming.”