Europe (Commonwealth Union)_A report has found that the Scotch Whisky industry supports 66,000 jobs across the United Kingdom and contributes £7.1 billion to the economy.
According to a report carried out by the Scotch Whisky Association (SWA), the UK economy gets a £7.1 billion lift from Scotch Whisky.
The SWA claims that as well as this, the sector supports 66,000 jobs across the UK, with 41,000 of these roles based in Scotland.
Going further, the research noted that the Scotch Whisky industry is now responsible for generating £3 in every £100 of Scotland’s total Gross Value Added (GVA), and finds that ranked just behind energy including renewables, it is the second most productive sector in Scotland.
The report also found that the industry performs a vital role in driving productivity across Scotland, with the manufacturing of beverages in Scotland – dominated by Scotch – producing £273,000 GVA per employee.
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Mark Kent, Chief Executive of the SWA shared that the Scotch Whisky industry has once again proven its economic significance to the UK domestically and on the world stage, and that these figures highlight the importance of backing a key sector for productivity, exports and employment.
Kent went on to emphasise however, that he believes it is “vital” that the industry is supported by government in order for business to be able to continue to invest in the UK economy.
Although Scotch Whisky companies has been adapting to domestic and global changes, SWA has shared the sector is warning that while there was room for further growth, Scotch whisky continues to face multiple barriers, including key infrastructure in Scotland in need of investment, the highest spirits duty rate in the G7, and trade deals including with India still to be finalised.
SWA explained that these challenges combined with rapidly increasing competition from premium spirits in global markets puts future investment, growth and jobs at risk without government support.
Kent disclosed that the past five years has been turbulent for our sector since it has been facing retaliatory tariffs in the US, as well as contending with the knock-on economic pressures of the COVID-19 pandemic.
Kent continued that the Scotch Whisky industry has remained resilient, with capital investment directed towards fulfilling their collective sustainability ambitions, creating world-class visitor attractions, and building more distilleries that will help boost jobs and growth.
Looking to the near future, Kent said that ahead of the UK Spring Budget on 6th of March and this year’s General Election, it is “vital that the industry is supported by government so that businesses can continue to invest in the UK economy”.
The report also found that 75 percent of the total GVA of the Scotch Whisky industry is generated in Scotland, a figure which is equal to £5.3 billion annually. The SWA says that this is helped by legislation that required 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.
Scottish Secretary Alister Jack shared that he welcomed this report which demonstrated the great strength and resilience of the Scottish whisky industry. The sector’s contribution to the economy, with ever-growing exports and investment in skills and jobs, is of vital importance to Scotland, and the whole of the UK.
The UK Government wholeheartedly supports the industry. Scotch is not just Scotland’s but the most valuable food and drink export from the UK, and that is why we’ve given it 10 cuts or freezes in duty at the last 11 Budgets, as well as removing punitive tariffs imposed on the US market. He said they were pushing forward with new and robust global trade agreements that will continue to safeguard the interest of Scotch whisky, ensuring that the unique characteristics and reputation of Scotch are protected.
Wellbeing Economy Secretary Neil Gray noted while speaking on how valuable Scotch Whisky is to the economy, that it also bolsters tourism and hospitality.
“It supports thousands of jobs – including in rural areas – and is a success story at home and internationally. Scotch Whisky is a world-renowned brand and our leading single food and drink export product. Continued growth in global markets means more jobs and investment across Scotland, our communities benefit and it entices visitors and residents to experience the incredible offer we have here in Scotland.
Gray concluded by saying that the Scottish Government will continue to work with the whisky sector to drive further growth and success,”.
