Last month saw the delivery of Jeremy Hunt’s Autumn Statement and the Chancellor - rightly in my view - chose to prioritise growth rather than increasing public expenditure.
The overarching objective of the Autumn Statement was demonstrated in the decision to freeze alcohol duty until August 2024. The Chancellor has correctly identified Scotch Whisky as an increasingly lucrative industry and I am delighted the UK Government has taken this decision to try and stimulate its full growth potential.
The last few years has seen the whisky industry thriving like never before. The export value of Scotch Whisky increased by 37% last year to £6.2bn and this is being driven by a growing demand in the international market; in Europe, the United States and the Far East. The industry also directly employs 11,000 people, the vast majority of whom are working in rural Scotland.
What makes this product so special is it not just the bottle itself – but the tourism it generates. Many of Scotland’s rural small businesses – such as bars, restaurants, accommodation, and retail - are mutually rewarded by a rapidly growing tourist market in those travelling between distilleries on the whisky trail.
Despite this, rural businesses have little to be joyous about at the moment. Many in the sector feel they are having to repeatedly take account for SNP-Green policies which are fundamentally anti-growth. This difficult legislative agenda has dealt small businesses Short-term Lets, the Visitor Levy, the Deposit Return Scheme, Highly Protected Marine Areas, rent freezes and high business rates. It is no surprise at all that just 9% of firms believe the Scottish Government understands business. And still, of course, dealing with the long-term economic consequences of Covid.
I have spent a lot of time engaging with representatives in the Scotch Whisky Association and they believe there is still significant avenues for further growth, especially in the Asian market. But they are also firm in their view that government policy will be a large determinant in how far this business can grow. That is why I am delighted that the UK Government is doing all it can to support this uniquely Scottish product.
The response from the industry to the Autumn Statement has been one of elation and I was delighted to join the Scotch Whisky Association in ‘raising a dram’ for the Chancellor.
