UK Budget 2026: Scotch whisky sector hails a 'disappointing blow'

The whisky industry has criticised the Budget

placeholder image — The whisky industry has criticised the Budget

Alcohol duty will rise again in line with inflation

The Scotch whisky industry has condemned a rise in alcohol duty, calling it a “disappointing blow” to the sector.

The Scotch Whisky Association (SWA) said it will see the tax burden on the average bottle increase to 74 per cent.

It said this will stall investment and limit the ability to generate growth.

Scottish Conservative leader Russell Findlay said: “Labour’s Budget will inflict a monster hangover on the whisky industry.

“Andy Burnham’s latest tax raid on Scotch will harm Scottish jobs, distillers and the supply chain – while generating less money for the Treasury.”

The Budget confirms alcohol duty will once again rise in line with inflation, despite industry calls for a freeze.

READ MORE: What John Healey's spending plans mean for Scotland and you

Mark Kent, chief executive of the SWA, said: “Today’s spirits duty increase announced by the Chancellor is a disappointing blow to the Scotch Whisky sector, its supply chain and the local communities it supports.

“Another duty increase – the fourth in as many years – will see the tax burden on the average bottle of Scotch whisky rise to 74 per cent.

“Further support has been offered to small brewers and cider makers, excluding small producers in the spirits sector which is hugely important to the Scottish economy.

“The fact remains that consumers who don’t choose to drink pints – and the hospitality businesses who rely on spirits as part of a diverse and modern offering – are being unfairly penalised.

“We’ve repeatedly warned that increasing the spirits super tax will not only pile further costs on distillers, but will harm the supply chain and reduce Treasury revenue. Nobody wins when hard-pressed businesses are taxed to the hilt.

“The UK government should listen to business and pay attention to the evidence.

“We will fully consider the findings of the evaluation report published today and press the Treasury for systemic reform to provide greater fairness for Scotch whisky.

“Today’s decision to increase duty, alongside the inherent imbalance at the heart of the current duty system, puts further pressure on the sector, stalls investment and ultimately limits our ability to generate growth.”