Whisky duty increase will reduce deaths, say health campaigners

The UK Government’s increase in tax on whisky will reduce alcohol related deaths, health campaigners have said. Scottish Health Action on Alcohol Problems (SHAAP) said that Chancellor John Healey was right to increase spirits duty in the Budget - and that not doing so could have “contributed to hundreds of additional deaths across Scotland.” It comes after MPs voted to raise alcohol duty in line with inflation - 4.55 per cent - from February in the Commons on Tuesday night.

Scottish Labour MPs had been under pressure from the SNP to vote against the increase. SHAAP Chair Dr Alastair MacGilchrist said: "As a liver doctor, I have seen first-hand the devastating consequences of alcohol harm, from years of chronic ill health to the loss of people who should have had decades of life ahead of them. “And when alcohol duty is increased, which affects price and therefore consumption, deaths from alcohol-specific causes go down.

Conversely, duty cuts and freezes under the previous government are estimated to have contributed to hundreds of additional deaths across Scotland. That is why the Chancellor is right to increase duty. "The alcohol industry's arguments against duty increases do not stand up to scrutiny and it’s important to note that many of the companies behind our best-known whiskies also own a vast range of other alcohol products, including those sold cheaply that cause the greatest harm.

“Around 95 per cent of Scotch whisky is exported and is therefore not subject to UK alcohol duty, meaning this change is going to have little to no impact on the whisky industry’s balance sheet. Moreover, despite frequent claims about the tax burden on whisky, we estimate that the tax share of a bottle of blended Scotch is lower now than it was eight years ago. “Instead of the blanket duty cuts and freezes of the past, increasing duty coupled with targeted support to independents and the hospitality sector is the best way forward for the health of our economy and for the health of the people the government serve.”

The Scotch Whisky Association said this fourth consecutive duty increase on spirits means the tax burden on the average bottle of whisky will rise to 74 per cent. It has also gone up 24 per cent since 2023. This means that £12.84 of the average price of a bottle of Scotch Whisky will now be taken in tax, including £9.95 in excise duty on every bottle. SWA chief executive Mark Kent said on the day of the Budget: “Today’s spirits duty increase announced by the Chancellor is a disappointing blow to the Scotch Whisky sector, its supply chain and the local communities it supports.

“Another duty increase – the fourth in as many years – will see the tax burden on the average bottle of Scotch Whisky rise to 74%. Further support has been offered to small brewers and cider makers, excluding small producers in the spirits sector which is hugely important to the Scottish economy. The fact remains that consumers who don’t choose to drink pints – and the hospitality businesses who rely on spirits as part of a diverse and modern offering – are being unfairly penalised.

“We’ve repeatedly warned that increasing the spirits super tax will not only pile further costs on distillers, but will harm the supply chain and reduce Treasury revenue. Nobody wins when hard-pressed businesses are taxed to the hilt. “The UK Government should listen to business and pay attention to the evidence. We will fully consider the findings of the evaluation report published today and press the Treasury for systemic reform to provide greater fairness for Scotch Whisky.

Today’s decision to increase duty, alongside the inherent imbalance at the heart of the current duty system, puts further pressure on the sector, stalls investment and ultimately limits our ability to generate growth.”