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The amber nectar is
revered the world over but is facing uncertainty both at home and
overseas. Whilst the UK-wide sector hopes of a reprieve of sorts from
Trump's Transatlantic tariff hike uncertainties, it is having to
challenge the Westminster Government over an excessively high tax burden
on the cost of an average-priced bottle of whisky.
The Scotch Whisky Association reports such taxes account for two-thirds
of the price of a 70cl bottle. SWA reports to its 30,000-plus followers
on LinkedIn at stake is the future wellbeing of a £7 billion ($9.5bn)
sector with around 66,000 employees across Britain.
SWA warns 3-in-4 whisky
firms are set to put off injecting new investment into their operations
whilst 1-in-4 expect to make jobs cuts. It's all due to what's been
described as "economic headwinds" that, of course, take in the United
States tariff uncertainties.
INDIA TRADE AGREEMENT SUCCESS
Significant sums have to date been spent by the sector keeping fully
up-to-date of digital developments to further enhance the production and
marketing of its unique global product along with extra-busy securing
new markets.
This includes India that has become the world's largest importer of
Scotch whisky by volume due to a recent trade agreement expected to
further boost exports by significantly reducing import tariffs.
Increasing numbers of Indians just love the amber nectar, so do
Americans - could the India deal somehow offer up a paradigm for the
United States? Just a thought..
SWA research of the sector's views on tax burdens was conducted between
February and June 2025 revealing the extent of concern companies face
about current levels of alcohol duty in the UK.
Along with a negative impact on direct investment and jobs there is an
increasing risk of knock-on job losses across an extended supply chain
as distillers reduce production in the face of global tariffs impacting
exports.
SWA's chief executive Mark Kent: "The Scotch whisky industry has a long
track record of investment and growth that has benefitted communities
across Scotland and the supply chain across the UK."
US TARIFFS STANCE A
SIGNIFICANT CHALLENGE
The sector is described as "always optimistic and confident" based on
creating future growth. "However, the positivity of the industry is
being severely tested by the relentless impact of domestic policies and
global circumstances."
The association claims such increasing domestic pressures come at a time
the industry would otherwise be looking to support the Prime Minister's
growth mission.
Such a high tax burden is not delivering the expected additional revenue
for the Government "but it is costing jobs and investment..at a time
when the country needs economic growth we cannot fail to back one of the
UK's longstanding successes."
The US tariffs approach is described as representing a "significant
challenge". A self-proclaimed teetotaller Trump could very well take in
Scotland, the land of his mother's birth, during his forthcoming UK
State visit in September (or sooner?)
Let's hope The US President sees sense before crossing the Pond. Perhaps
as an icebreaker, whilst he is over here - might the King offer him a
dram? |
