The Scottish Whisky Association (SWA) has revealed that since the 10.1% increase in excise duty on Scotch whisky and spirits in August 2023, the Treasury has been losing an estimated £500,000 a day. This equates to £350 every minute in potential revenue HMRC could have collected if the largest duty hike in over 40 years had not been implemented.
Between August 2023 and November 2024, spirit excise duty receipts fell by £255 million compared to the same period the previous year, dropping from £5.67 billion to £5.4bn. Monthly comparisons show November 2024 receipts at £378m – £29m less than November 2022 – while December 2023 receipts dropped sharply to £471m from £521m in December 2022, one of the busiest months for alcohol sales.
The SWA attributes this decline to the increased duty rate, highlighting the strain on an industry that remains resilient despite domestic and international challenges. Chief Executive Mark Kent has urged Prime Minister Keir Starmer and Chancellor Rachel Reeves to reform the excise system. He argues that a fairer system would stimulate investment, protect jobs, and contribute to economic growth.
The next set of tax receipts, covering December 2024, will be published on 22 January. The SWA and industry stakeholders hope these figures will underscore the need for urgent action to support one of the UK’s most iconic and economically significant sectors.
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