His Majesty’s Revenue and Customs (HMRC) data cited by Scotch Whisky Association (SWA) revealed that the UK Treasury loses £350 (US$424) a minute in tax revenue, following the 10.1% rise on spirits duty on 1 August.
The data also showed that revenue from spirits duty fell by £255 million (US$309m) between 1 August 2023 and 30 November 2024 when compared to the same period the previous year.
Furthermore, the figures highlighted a further 3.6% fall in spirits revenue compared to November 2023. The SWA said this decrease came after the UK government’s decision to further increase duty by 3.65% in the autumn budget on 30 October.
The latest tax hike on spirits will come into force on 1 February 2025 in line with the Retail Price Index (RPI).
The SWA warns that the industry is overburdened by duty even before the latest rise, which will result in consumers paying at least £12 (US$15) of tax on every bottle of Scotch whisky.
Mark Kent, SWA chief executive, said: “Yet again the industry has been proved right about how hiking tax rates leads to less revenue and stalls growth. We are not crying wolf – HM Treasury needs to understand that even this resilient industry cannot be stretched beyond breaking point.
“In these new HMRC spirits duty figures, there is no sign of forestalling since the latest duty increase was announced on 30 October. There is just more evidence of an industry which is already overtaxed by the UK government.
“Consumers cannot continue to bear the cost of one of the highest duty rates on Scotch whisky in the world, which will get worse in three weeks when the latest duty hike announced by the chancellor comes into effect.”
Kent claimed prime minister Keir Starmer’s promise to “back Scotch producers to the hilt” was broken by the latest tax hike, with the latest figures from HMRC highlighting a “misstep”.
He called on the UK government to avoid further duty increases on Scotch to support the whisky industry, as it can “make all the difference in deciding to invest in the UK, creating jobs and boosting our domestic supply chain”.
