UK government launches Scotch whisky inquiry
The Scottish Affairs Committee’s new inquiry will scrutinise the impact of domestic policy, trade agreements and tariffs on the Scotch whisky industry.
The inquiry into the health of the Scotch whisky sector follows several years of declining exports, with exports accounting for around 90% of all whisky production in Scotland.
Figures released by the UK government indicate that whisky exports fell from a peak of £6.2 billion (US$8.35bn) in 2022 to £5.6 billion (US$7.54) in 2023, with further declines predicted.
Patricia Ferguson, chair of the Scottish Affairs Committee, said: “Scotch whisky is an iconic product and one of the UK’s flagship exports, supporting thousands of jobs and making a significant contribution to Scotland’s economy, particularly in rural communities. However, the industry is operating in an increasingly challenging environment, facing trade uncertainty as well as rising costs and regulatory pressure at home.
“Our inquiry will examine the opportunities and challenges facing the Scotch whisky sector, and how the UK government can ensure it benefits from tariff reliefs and wider trade policy. We’ll also look at domestic pressures, such as the introduction of the Deposit Return Scheme, workforce challenges and rising energy costs.
“I encourage anyone with expertise in this area to submit evidence to our inquiry and inform our work.”
The deadline for submissions of evidence to the committee is now open and will close at 11.59pm on Friday 18 September 2026.
Difficult times for Scotch whisky producers
A spokesperson for the Scotch Whisky Association (SWA) welcomed the inquiry, saying: “Scotch Whisky is one of the UK’s leading export industries, but producers are operating in an increasingly challenging environment. Global trade uncertainty, tariffs and geopolitical tensions, alongside rising domestic costs, an increasing excise duty burden and regulatory pressures, are impacting competitiveness and investment across the sector.
“We look forward to working with the committee to identify practical steps that will support jobs, exports and the long-term growth of our industry across Scotland and the rest of the UK.”
In February 2026, the SWA announced that tariffs on Scotch whisky imposed by the Trump administration contributed to a 15% drop in exports to the US in 2025.
The trade body had previously indicated that the tariffs were costing the Scotch whisky industry £20 million each week in lost export revenue.
President Trump announced plans to remove the 10% tariff on goods from the UK in May 2026, following a state visit by King Charles.
In February this year, restructuring firm BTG found that 19% of Scottish distilleries were facing ‘significant or critical’ financial issues.
Earlier this month, the UK-India free trade agreement signed by prime ministers Kier Starmer and Narendra Modi came into force, cutting tariffs on exports of Scotch whisky to India from 150% to 75%.
Mark Kent, chief executive of the SWA, welcomed the news as “a positive development for the sector amid a challenging few years.”
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