Press & Policy

• Twelve leading organisations call on Chancellor to freeze spirits duty in November’s Budget.
• A freeze represents an investment in some of the UK’s most iconic products, the signatories say.
• The organisations highlight the importance of spirits to the UK’s hospitality sector amid difficult economic conditions.

(October 2025) – A coalition of leading organisations have today sent an open letter to the Chancellor calling for a freeze on spirits duty in November’s Budget. The coalition has warned the Chancellor that any further increase would undermine some of the UK’s most valuable products and hospitality venues.

The joint letter, signed by twelve organisations representing thousands of businesses across the UK and generating billions in revenue for the Treasury, highlights the spirits industry’s – and specifically the Scotch Whisky industry’s – vital role across Scotland and UK in supporting jobs, driving growth, and generating tax revenue.

The signatories stress that a freeze on spirits duty would not constitute a handout, but represents a sensible, strategic investment in a home-grown supply chain and export powerhouse at a time when industries are facing significant economic headwinds.

Particularly hard hit is the hospitality sector, with thousands of jobs lost and hundreds of venues closing as a direct result of the hardships it faces. “Pubs cannot survive on beer alone”, the group writes.

Dr Liz Cameron CBE, Director and Chief Executive of the Scottish Chambers of Commerce said: “We are united in calling on the Chancellor to back a fair deal for Scotch Whisky and the UK’s spirits sector in this Autumn’s Budget.

“A duty freeze is not a handout. It is an investment in British business, British exports, and British jobs – and a chance to back one of the UK’s most successful and globally recognised industries, alongside the sectors that bring these products to life for consumers at home and abroad.”

Andrew Connon, President of NFU Scotland added: “Quality cereals grown here in Scotland are the foundation of a hugely valuable supply chain – one that runs from grain to glass and delivers skilled jobs, investment, and economic growth. It also plays a vital role in the UK’s global reputation as a leading exporter of premium spirits. Wherever these spirits end up – in bars and restaurants here at home or on shelves around the world – what matters is that the place they’re made stands firmly behind the businesses that make them. A freeze on spirits duty would be a clear signal of that support.”

Signatories of the letter, which has been sent to the Treasury with less than 40 days to go until the Budget, also warned the Chancellor that some companies are halting investment or looking abroad, while others are cutting headcount, because of the current business environment they face.

A long-term duty freeze would “send a strong signal of Government support for iconic UK products – from Scotch whisky to gin – while underpinning investment, safeguarding jobs, and helping to secure the future of hospitality venues and their supply chains.”, the signatories added.

END

Notes to Editor:

• Signatories of the letter are representatives of the Federation of Small Businesses, Institute of Directors, Prosper, Scotland Food & Drink, Scottish Chambers of Commerce, Scottish Tourism Alliance, UK Hospitality Scotland, Scottish Grocer’s Federation, the National Farmer’s Union of Scotland, Night Time Industries Association, the Scottish Wholesale Association and Walpole.
• Scotch Whisky Association research reveals that over 1,000 jobs have been lost in the industry since October 2024 Budget.
• UK Hospitality predicts 111,000 jobs will be lost in the industry by November Budget, since October 2024.
• British Beer and Pubs Association warns that a pub is set to close every day in 2025.
• A Scotch Whisky Association members’ survey revealed that 75% of companies expect to defer investment, or invest outside of the UK; and a quarter expect to reduce headcount.