Following their earlier pleas to all political parties in the run up to the election, various trade bodies representing the UK drinks industry have called upon the incoming government to support the sector going forward.
The Labour Party have swept into power at Westminster, winning more than 400 seats. Labour didn’t specifically mention the drinks industry in their manifesto, though leader Sir Keir Starmer did say that any future Labour government would support the Scotch whisky industry “to the hilt” during a visit to Inchdairnie distillery last year.
The primary concern for much of the industry is taxation. In August 2023, parliament raised duty on spirits by 10.1%. This made the tax paid on any bottle of spirits bought in the UK significantly higher than the European average (feel free to read some of Bevvy’s previous articles for more information on this issue).
The Wine and Spirits Trade Association has pointed out that this duty hike has resulted in a reduced volume of sales. Consequently, the revenue generated by alcohol tax has also fallen over the course of the year.
In terms of the Scotch whisky industry, chief executive of the Scotch Whisky Association Mark Kent seems optimistic. In congratulating the future Prime Minister, Kent said “we look forward to working in partnership with him, the Secretary of State for Scotland and his whole cabinet to […] ensure Scotch whisky can continue to drive growth, create jobs and boost investment in Scotland, and right across the UK.
When discussing what any government can specifically do to back Scotch producers, Kent added key goals would be “reducing the tax burden on spirits in the UK [and] protecting our industry from tariffs in key global markets.”
Earlier this year the SWA released data showing how important Scotch is for the economy of not just Scotland, but the UK as a whole. For example, Scotch exports reached a value of over £5 billion in 2023.
The WSTA expanded on those figures, reporting that in 2022 the wine and spirits industry supported 413,000 jobs and contributed £76.3bn in economic activity across the UK.
Miles Beale, chief executive of the WSTA, echoed some of his SWA counterpart’s sentiments in saying that “we are looking forward to working with a new administration that has rightly called for closer partnership between business and government to deliver economic growth. It feels like a fresh chapter.”
Beale also called for Labour to ease taxation on wine and spirits as part of their pledge to support businesses with taxation models that allow for long-term planning.
Sustainability was also prominent in both groups’ messages to Labour. Mark Kent commented that he hopes the new government will “work closely with the industry as we continue on our journey towards net zero”, while a statement by the WSTA called on Labour to work with the industry to “deliver an environmentally sustainable agenda”.
Over the coming days there will no doubt there will be many glasses raised in celebration among the Labour Party and their supporters. As Starmer and his team shape up their plans for the future, we hope that some consideration will be paid to the contents of those glasses and their producers.