The Scotch Whisky Association (SWA) urges the UK government to reduce tax burdens and support Scotch producers amid declining exports.
- Export value of Scotch whisky decreased by 18% in the first half of 2024 compared to 2023.
- Volume of Scotch whisky exports fell by 10.2%, highlighting significant challenges for the industry.
- SWA pushes for UK-India Free Trade Agreement to reduce the high 150% tariff impacting export growth.
- Chief executive Mark Kent stresses the need for government support to overcome short-term volatility.
The Scotch Whisky Association (SWA) is urging the UK government to alleviate the tax burdens on Scotch producers, which have been exacerbated by the largest duty increase in 40 years. The SWA highlights the promise made by Prime Minister Keir Starmer to support Scotch producers, particularly following the adverse effects of the 10.1% duty rise in August of the previous year.
In a release of new data compiled by HMRC, the SWA reported an 18% drop in the export value of Scotch whisky in the first half of 2024 compared to the same period in 2023. This decline followed an export reduction after a record-breaking performance in 2022. The volume of exports also suffered, decreasing by 10.2%, translating to 566 million 70cl bottles exported, a drop from 40 bottles per second in 2023 to 36 in 2024.
Despite these challenges, the Indian market demonstrated resilience and growth, with a rise of 17.3% in export volume in the first half of 2024. Nevertheless, the SWA urges the UK government to accelerate efforts in finalising a UK-India Free Trade Agreement. Such an agreement could pave the way for a phased reduction of the towering 150% tariff on imports, which would not only benefit UK industries but could potentially augment the Scotch whisky export value by £1 billion over five years.
Mark Kent, the SWA’s chief executive, emphasised the industry’s resilience in exporting to over 180 markets worldwide. However, he notes that significant government backing is necessary to navigate turbulence caused by international uncertainties and inflationary pressures affecting global markets. “The success of Scotch whisky requires government support to ease the industry through short-term volatility,” he asserted, acknowledging the challenging economic environment faced by premium global exports.
Kent also pointed out the fiscal implications of the recent tax changes, which saw a loss of nearly £300 million in tax revenue for HM Treasury due to the previous year’s duty increase. He argues that reversing this damage through a reduction in duty would not only support the industry during its current challenges but would also positively impact public finances.
As the industry faces ongoing challenges, government support remains crucial for the sustained success of Scotch whisky exports.
