A new report released today by the Scotch Whisky Association, has shown
that Scotch whisky boosted the UK economy by £7.1 Billion in 2022.
The report also revealed that the Scotch whisky industry is
now responsible for generating £3 in every £100 of Scotland’s total Gross Value
Added (GVA), and is the second most productive sector in Scotland, ranked just
behind energy including renewables.
Scotch whisky boosts UK economy by £7.1BN
Scotch whisky companies have continued to invest to drive growth, employment and productivity despite domestic and international challenges. However, the sector is now warning that while there is room for further growth, Scotch whisky continues to face multiple barriers, including the highest spirits duty rate in the G7, key infrastructure in Scotland in need of investment, and trade deals - including with India, which are still to be finalised.
The report found that 75% of the total GVA of the Scotch
Whisky industry is generated in Scotland, equal to £5.3bn annually – helped by
legislation that requires all Scotch whisky to be distilled and matured for at
least three years in Scotland, and all single malt Scotch whisky to be bottled
in Scotland.
The report also found that the industry performs a crucial
role in driving productivity across Scotland. The manufacturing of beverages in
Scotland – dominated by Scotch – produces £273,000 GVA per employee.
Comparatively, the industry is second only to the energy sector (including
renewables) at £279,000 per head (in 2019).
Commenting on the news, Mark Kent, Chief Executive of the Scotch
Whisky Association, said: “The Scotch whisky industry has once again proven its
economic significance to the UK domestically and on the world stage, and these
figures highlight the importance of backing a key sector for productivity,
exports and employment.”
He went onto say: “The past five years have been turbulent
for our sector, as we faced retaliatory tariffs in the United States, in
addition to the global pandemic and the knock-on economic pressures. The Scotch
Whisky industry has remained resilient, with capital investment directed
towards fulfilling our collective sustainability ambitions, creating
world-class visitor attractions, and building more distilleries that will help
boost jobs and growth.”
Ahead of the UK Spring Budget on March 6th and this year’s
General Election, the Scotch Whisky Association, has also said that it is vital
that the industry is supported by government so that businesses can continue to
invest in the UK economy.
Posted by Steve Rush