One in four Scotch distillers expect to make job cuts due to ongoing economic headwinds, according to a new survey from the Scotch Whisky Association (SWA).

The research, conducted between February and June 2025, also found that 75% of companies expect to defer investment or invest outside of the UK, citing the high tax burden as a key factor. 

Currently, around two-thirds of the price of an average bottle of Scotch whisky is collected in tax. 

Following the 10.1% rise in duty in 2023 and a further 3.65% increase announced in the October 2024 Budget, 87% of respondents said they fear another excise duty hike in the upcoming autumn 2025 Budget. 

The SWA warned that any further rise in duty would negatively impact both investment and recruitment, affecting not just distillers but the wider supply chain. 

Commenting on the survey, Mark Kent, chief executive of the SWA, said: “The Scotch whisky industry has a long track record of investment and growth that has benefitted communities across Scotland and the supply chain across the UK. It is also an optimistic and confident sector that believes in creating future growth. 

“However, the positivity of the industry is being severely tested by the relentless impact of domestic policies and global circumstances. 

“The industry is facing the significant challenge of US tariffs and increasing domestic pressures at a time it would otherwise be looking to support the Prime Minister’s growth mission. This high tax burden is not delivering the expected additional revenue for the government, but it is costing jobs and investment. 

“At a time when the country needs economic growth, we cannot fail to back one of the UK’s longstanding successes.”