Scotch adds £7.1bn to UK economy

A report by the Scotch Whisky Association (SWA) has revealed that Scotch production, sales and distribution generated £7.1 billion (US$9bn) in the UK in 2022.

In Scotland specifically, the sector generated £5.3bn (US$6.7bn).

The SWA added that the industry supports 66,000 jobs across the UK, of which 41,000 are in Scotland.

Scotch generated 3% of Scotland’s total gross value added (GVA) and is the second most productive sector in the country.

Three-quarters of the industry’s total GVA is generated in Scotland, equal to £5.3bn annually.

Additionally, exports of Scotch whisky have increased by 31% between 2018 and 2022, to a record £6.2bn. This constituted 77% of all Scottish food and drink exports.

Mark Kent, chief executive of the SWA, said: “The Scotch whisky industry has once again proven its economic significance to the UK domestically and on the world stage, and these figures highlight the importance of backing a key sector for productivity, exports and employment.

“The past five years have been turbulent for our sector, as we faced retaliatory tariffs in the United States, in addition to the global pandemic and the knock-on economic pressures.

‘The Scotch whisky industry has remained resilient, with capital investment directed towards fulfilling our collective sustainability ambitions, creating world-class visitor attractions, and building more distilleries that will help boost jobs and growth.

“Ahead of the UK spring budget on 6 March and this year’s general election, it is vital that the industry is supported by government so that businesses can continue to invest in the UK economy.”

Prior to the UK’s previous budget, the SWA campaigned for fairer taxation on spirits, stating that the current system discriminates between alcohol categories.

Scottish secretary Alister Jack said: “I welcome this report, which demonstrates the great strength and resilience of the Scottish whisky industry. The sector’s contribution to the economy, with ever-growing exports and investment in skills and jobs, is of vital importance to Scotland, and the whole of the UK.

“The UK government wholeheartedly supports the industry. Scotch is not just Scotland’s but the UK’s most valuable food and drink export and that’s why we’ve given it 10 cuts or freezes in duty at the last 11 budgets, as well as removing punitive tariffs imposed on the US market.

“We are pushing forward with new and robust global trade agreements that will continue to safeguard the interest of Scotch whisky, ensuring that the unique characteristics and reputation of Scotch are protected.”