Scotch Whisky Powers UK Economy With £7.1bn
The Scotch whisky industry has become a major powerhouse to the UK economy providing over 66,000 direct jobs and an annual contribution exceeding £7bn. A new report showcased the impressive value of the whisky industry to the British economic portfolio.
There has been an increase in international demand for Scotch whisky in key markets such as the US, France, Singapore, Taiwan, China, and India. The industry contributed £5.3bn to the Scottish economy in 2022 and £1.8bn to the rest of the UK, according to the UK Office for National Statistics.
Scotch Whisky Plays a Vital Role in the UK Economy
According to the Scotch Whisky Association, Scotch whisky is responsible for £3 of every £100 of Scotland’s gross value added (GVA) and ranks second only to energy production in terms of economic importance.
Mark Kent, CEO of the SWA, 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.’
Despite several turbulent years including the Covid-19 pandemic, Brexit, and a trade battle between the USA and the UK, the industry has managed to remain resilient. Exports grew by 31% to £6.2bn between December 31, 2018, and December 31, 2022.
‘Ahead of the UK Spring Budget 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,’ added Kent
Scotland’s gross value added now according to figures from Scotch has grown to £273,000 per employee. Gross value added is a productivity metric used for assessing the contribution of a specific industry to the Scottish economy.
As the industry moves forward, leaders warn that the sector will face significant headwinds. These include high taxes that the UK government imposes on spirits sales, a lack of infrastructure investment in Scotland, and unresolved trade disputes.