Scotland relies on whisky industry

The importance of Scotch whisky to the Scottish economy was laid bare this week, with latest figures showing the industry is worth £4 billion a year to the national coffers.

The figures came as the Scotch Whisky Association (SWA) made fresh calls for a review of the duty regime that “undermines” the sector and “discriminates” against Scotch in its homeland.

The SWA figures reveal that annual turnover in the Scotch industry is now £6.4bn and that, with shipments of £3.1bn a year, Scotch is now the nation’s third-biggest export behind oil and gas.

The spending with Scottish suppliers, which includes £200 million on cereals, helps support 35,000 Scottish jobs, with the industry itself directly employing 10,300 people across the country, according to the SWA.

"Scotch Whisky’s importance to Scotland is clear,” said Gavin Hewitt, SWA chief executive. “The study confirms Scotch is a cornerstone of the Scottish economy, supporting 35,000 jobs and generating around £4bn in added value.

“That economic impact benefits every corner of Scotland, with distillers spending over £1bn across the supply chain.

“The new UK government wants to support manufacturing and exporters, and build a fairer tax system. It could combine all three objectives by reforming an unfair duty regime which undermines the competitiveness of the Scotch whisky industry.

“The alcohol duty structure is no longer fit for purpose, discriminating against Scotch whisky at home and sending out the wrong message overseas.

“We are pleased the new coalition government has announced it will review alcohol taxation.

“The aim must be to put in place a fairer and more socially responsible regime where all alcohol is taxed according to content.

“With the right support, the Scotch whisky industry can deliver even more to communities across Scotland.”

Alan Lodge, 02.06.2010