GMB urges Chancellor to freeze whisky duty

The Chancellor must freeze excise duty on whisky for the rest of the current parliament to protect jobs and boost growth, according to GMB Scotland.

One of the biggest unions in the whisky industry said higher taxes may not raise revenues but only undermine sales abroad and risk jobs in Scotland.

In a letter to chancellor Rachel Reeves, ahead of the budget next month, the union called for a freeze on duty until the next Westminster election - due in 2029 - to support both economic growth and public finances.

Louise Gilmour, GMB Scotland secretary, said the move would immediately help support exports and jobs while bolstering the Treasury’s revenues in the long term.

Citing research suggesting last year’s inflationary increase in duty reduced rather than increased tax receipts, she added: “A freeze could actually increase the Treasury’s take.”

According to the Scotch Whisky Association, the industry exported around 1.4bn bottles in 2024 worth over £5.4bn in 2024 with 44 bottles of being shipped every second to around 168 global markets.

Gilmour welcomed the UK Government trade deals with major importers of Scotch, including the United States and India, but warned reduction in tariffs are gradual and the benefits will take time to be seen as whisky producers report slowing international sales.

She said: “Vital steps can be taken now to back Scotch whisky amidst global trade uncertainty whilst still protecting public finances.

“A commitment to freeze excise duty throughout this Parliament will provide business confidence in a sector struggling under increased tariffs and taxation, while allowing the benefits of the government’s economic policies to reach our members on the shop floor.”