Overview: The Scottish National Party (SNP) has accused the Labour Party of betraying the country’s whisky industry, citing new figures that reveal a significant decline in revenue from alcohol duty on spirits. The SNP claims that Labour’s tax hike on Scotch whisky is harming both producers and consumers.
The Full Story
The controversy surrounding Labour’s tax hike on Scotch whisky began when Prime Minister Sir Keir Starmer pledged to “back Scotch producers to the hilt” during a visit to InchDairnie Distillery in November 2023. However, just months later, the UK Government raised spirits duty by 3.65% in Chancellor Rachel Reeves’ debut Budget on October 30, 2024.
The increase took effect from February 2025 and drew strong opposition from the Scotch whisky industry, which warned that higher prices would lead to lower sales. The SNP has now released new figures showing a £156 million plunge in revenue from alcohol duty on spirits between April and October 2025 compared to the same period in 2024.
The total value of revenue collected from alcohol duty on spirits during this period was £2.156 billion, representing a decrease of 7% compared to the previous year. The SNP claims that these figures prove Labour’s tax hike is harming both whisky producers and the public purse.
Production & Profile
The Scotch Whisky Association has long warned that increasing duty on Scotch whisky will lead to higher prices and lower sales. This prediction seems to be borne out by the new figures, which show a significant decline in revenue from alcohol duty on spirits.
The production process for Scotch whisky involves several stages, including malting, mashing, fermentation, distillation, and maturation. The quality of the final product depends on various factors such as the type of grain used, the water source, and the aging process.
Brand & Industry History
The history of Scotch whisky dates back to the 15th century when monks first began producing it in Scotland. Over time, Scotch whisky became a staple of Scottish culture and economy. Today, Scotland is home to over 100 distilleries that produce some of the world’s finest whiskies.
However, the industry has faced numerous challenges in recent years, including changes in consumer preferences and increased competition from other spirits. The tax hike imposed by Labour has added to these pressures, making it even more difficult for Scotch whisky producers to compete.
What This Means
The decline in revenue from alcohol duty on spirits is a clear indication that Labour’s tax hike on Scotch whisky is not working as intended. Instead of generating additional revenue, the increase has led to lower sales and reduced profits for producers.
This development raises questions about the wisdom of Labour’s policy and its impact on Scotland’s economy. The SNP claims that this decision will harm both whisky producers and consumers, leading to higher prices and lower quality products.
Consumer Takeaway
The decline in revenue from alcohol duty on spirits has significant implications for Scotch whisky consumers. With reduced profits for producers, it is likely that prices will increase, making the product less affordable for many people.
This development also highlights the need for a more nuanced approach to taxation and regulation of the whisky industry. The SNP argues that Labour’s tax hike is not only harming producers but also consumers who rely on Scotch whisky as a source of income or enjoyment.
Source: Read the original article
