The Scotch Whisky Association (SWA) has called on the new UK government to take action to “back Scotch producers to the hilt” as prime minister Keir Starmer had promised to do in the run up to the general election.
This would include reducing the tax burden on Scotch whisky at the Budget on 30 October following what the group described as the “damaging” domestic impact of the 10.1% duty increase in August last year.
It comes as the SWA released new figures, collated by HMRC, which found that the export value of Scotch whisky in the first half of 2024 was £2.1bn, down 18% compared to the same period in 2023 – a year in which the industry saw a reduction in exports after a record breaking 2022.
In the same period, the volume of exports fell by 10.2%, to the equivalent of 566m 70cl bottles – or 36 bottles of whisky exported each second – compared to 40 bottles per second in the first half of 2023.
Subscribe to Grocery Gazette for free
Sign up here to get the latest grocery and food news each morning
By volume, India is the largest market, with growth of 17.3% in the first half of 2024, despite the current 150% tariff on imports remaining in place.
The SWA has called on the UK government to redouble efforts to conclude the UK-India Free Trade Agreement. It said the phased reduction of the tariff would benefit industries in both the UK and India and could see the value of Scotch whisky exports grow by £1bn over five years.
SWA chief executive Mark Kent said: “The prime minister has promised to ‘back Scotch producers to the hilt’. These figures are a reminder that the success of Scotch whisky cannot be taken for granted and requires government support to ease the industry through short term volatility.
“We are a resilient industry, exporting to over 180 markets, and are experienced in navigating such periods of turbulence, and we are confident of the long-term growth opportunities for Scotch whisky. But it is clear that the first half of 2024 has been challenging, as for other premium global exports. This has not come as a surprise given the volatile international situation affecting global industries and inflationary pressures which have fed through to consumers across global markets.”
He added: “The UK Budget on 30 October is the first opportunity for the new Labour government to show it truly supports Scotch. Last year’s double-digit tax hike on Scotch whisky in the UK, the largest in 40 years, has already lost HM Treasury almost £300 million in tax revenue. Beginning to reverse the damage by cutting duty on …will boost public finances and bolster the industry through this challenging period.”
