Whisky industry group advocates for prolonged freeze on liquor taxes in forthcoming fall budget.

Whisky association urges Chancellor Rachel Reeves to hold off on increasing spirits tax in upcoming budget, arguing higher taxes are hurting bars, restaurants, and Scotland's overall economy.

, and Administrator

2025 September 13 . 8:29 PM

2 min read

Spirits industry group calls for a prolonged halt in alcohol taxation before upcoming budget... — Spirits industry group calls for a prolonged halt in alcohol taxation before upcoming budget announcement.

Whisky industry group advocates for prolonged freeze on liquor taxes in forthcoming fall budget.

In the coming weeks, the fate of Scotch producers hangs in the balance as Chancellor Rachel Reeves prepares for her second budget, set for 26 November. The Treasury's confirmation of the budget date has prompted Mark Kent, Chief Executive of the Scotch Whisky Association (SWA), to urge the Chancellor to "back Scotch" within 84 days.

The Chancellor faces a significant fiscal hole of up to £40bn, but the SWA's appeal comes amid high inflation, soaring costs, and fragile consumer confidence in the pub, bar, and restaurant sectors. Business groups and industry bodies, including the SWA and the British Beer & Pub Association (BBPA), are lobbying to avoid further tax rises, emphasising the importance of tax certainty and stability for growth.

The Prime Minister has pledged to "back Scotch producers to the hilt," but there is speculation about possible tax increases in the upcoming budget. If implemented, these increases could have a significant impact on Scotch producers, who are closely watching the coming weeks to see if Reeves will honour the Prime Minister's promise or maintain her stance on higher spirits duty.

Scotch is essential to the wider UK economy, as 70% of all UK spirits are produced in Scotland. A duty freeze would help relieve pressure on venues which depend on spirits for profitability, particularly as closures across the sector mount. The SWA is advocating for a freeze on spirits duty across the lifetime of this parliament to prevent Scotch from falling further behind other alcohol categories.

The Chancellor, at her last Budget, increased the duty burden on the spirits industry, which is already weighed down by excessive tax and regulation. Despite the duty increase, tax receipts have not gone up, and more UK pubs and restaurants have been forced to close. A multi-year freeze on spirits duty would provide much-needed stability for producers and help sustain growth across the UK.

The budget decision will influence the growth and stability of Scotch producers and the wider UK economy. The SWA's request for a multi-year freeze on spirits duty in the upcoming autumn budget on 26 November serves as a call to action for the Chancellor to support Scotch producers and safeguard the future of this vital industry.