Spirits duty freeze a ‘proven, practical step’ to ease pressure on households and public finances
The Scotch Whisky Association (SWA) has called on the government to freeze Spirit Duty as the previous hikes have already resulted in greater borrowing costs, inflation, and a drop in government revenue.
In a statement, SWA chief executive Mark Kent argued that the 14% increase in spirits duty over the last two years had actually resulted in government revenue falling.
According to HM Treasury excise receipts released on 19 September, receipts from spirits duty fell 4.9% between April and August 2025, compared to the same five-month period the previous year. This amounted to a loss in revenue of £79 million. Meanwhile stats from the ONS released on the same day, showed that public sector borrowing in August was the highest it had been in five years, up £3.5million since August 2024 to £18 billion.
Kent argued that “we need to step away from that failed approach and understand we can’t tax our way to growth”.
The SWA pointed out that spirits revenue receipts had fallen £700m since August 2023, when the 10.1% duty was introduced, compared to the previous two-year period, which is said placed “further pressure on an already cash-strapped Government.”
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“Tax increases have led to greater inflationary pressures on consumers at a time when ordinary families are struggling and being squeezed from every direction.” Kent said. “Our sector sees the strain first-hand — distilleries, pubs and hospitality venues throughout the UK know customers are cutting back and businesses are struggling.”
He argued that a freeze on spirits duty at the next Budget was “a simple, proven, practical step that would ease pressure on households, protect jobs in our sector, and support Scotland’s world-renowned spirits industry” as well as boosting public finances.
It comes as the chair of the All-Party Parliamentary Group on Pubs, Charlotte Nichols MP, warned that “pubs cannot survive on beer alone” as spirits now make up 38% of on-trade profits.
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