Scotch Whisky Association says tax on whisky in UK has increased 44% since 2008
Sales of Scotch whisky in the UK dipped three per cent last year according to new official figures.
The number of 70cl bottles of whisky sold in the UK dipped to 87.5 million against 90.1 million the previous year, official government figures show.
Trade body the Scotch Whisky Association (SWA) argues incremental annual tax hikes are pushing up the price of whisky in its home market, though sales are also noted to have been impacted by recessionary factors and the changing drinking habits of younger consumers.
Since the 2008 banking crisis, whisky sales in the UK have declined more than 15 per cent, which the SWA says also corresponds with the introduction of the tax duty escalator which introduced an annual two percentage points above inflation duty rise.
The SWA said since the introduction of the escalator in 2008, the SWA tax on Scotch Whisky has risen by 44 per cent in the last five years, and 79 per cent of the average price of a bottle of whisky is now made up of tax and VAT.
SWA chief executive David Frost said: “It’s obviously disappointing to see this decline in Scotch Whisky volumes in our domestic market.
“In next week’s Budget the Chancellor has the perfect opportunity to support a vital Scottish industry.
“He should scrap the unfair alcohol duty escalator and freeze duty this year. This move would also benefit consumers and public finances.
“Since the introduction of the escalator in 2008, the UK market for Scotch Whisky has shrunk by more than 15 per cent.
“Fairer tax treatment would help address this decline in the UK.
“It would send the right message to overseas governments in markets where imported products, such as Scotch Whisky, face discrimination. It would also reflect and support the UK’s drive for export-led growth.”
