Scotch Whisky Industry (Importance of Supply Chain)

General Question Time – in the Scottish Parliament at on 15 January 2026.

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Photo of Jamie Hepburn Jamie Hepburn Scottish National Party

To ask the Scottish Government what its position is on the importance of the supply chain to the Scotch whisky industry. (S6O-05374)

Photo of Richard Lochhead Richard Lochhead Scottish National Party

The Scotch whisky industry is one of Scotland’s most significant economic sectors, contributing more than £5 billion in exports, and a resilient, competitive supply chain is essential to its continued success. The industry supports thousands of jobs across Scotland, not only in distillation and maturation but in farming, malting, packaging, logistics, engineering, tourism and professional services.

The wider supply chain is therefore integral to national economic growth, rural sustainability and export performance, and it is crucial to safeguarding the global reputation of Scotch whisky and ensuring the long-term competitiveness of the sector.

Photo of Jamie Hepburn Jamie Hepburn Scottish National Party

The First Minister has led from the front to protect Scotch whisky from US tariffs, taking the case directly to the US Government. Does the minister have any update on whether the United Kingdom Government has followed up the matter with the United States in order to protect the whisky industry and its supply chain, which includes packager Eurostampa, in my Constituency, which recently expanded its site in Cumbernauld with Scottish Enterprise support? Or are we left with the view that the UK Government views the Scottish food and drink sector as nothing more than a cash cow to support the UK Exchequer?

Photo of Richard Lochhead Richard Lochhead Scottish National Party

Jamie Hepburn makes a good point—the whisky sector is not just about distillers but about the wider supply chain, which benefits constituencies such as Jamie Hepburn’s.

On the tariffs issue, the First Minister was highly praised by the sector in Scotland, including in Speyside, in my Constituency, as he picked up the cudgels on behalf of the sector and took its case directly to the White House.

I raised the issues with my UK counterpart, Chris Bryant, at our meeting earlier this month. We are still waiting for the UK Government to deliver on what we all expect—to give Scotch whisky the priority that it deserves in those negotiations and to secure tariff exemptions from the US.

We are also disappointed that our calls to address the disparity in alcohol duty in the latest UK budget went unheard. Instead, the spirits sector faces a further increase in duty rates, which will rise by 18 per cent in three years. That takes the tax burden on a bottle of Scotch to an eye-watering 72 per cent.

I agree with Jamie Hepburn’s comments, and we will continue to pursue the case.

Photo of Craig Hoy Craig Hoy Conservative

I recently visited the Annandale distillery in Dumfriesshire and was impressed by its commitment to reaching net zero, with a significant investment in a multimillion-pound, game-changing thermal energy storage system, which was partly funded by the previous UK Conservative Government. What support can the Scottish Government give to the Scotch whisky industry to meet its decarbonisation and sustainability goals, not just in our world-class distilleries but throughout the wider supply chain?

Photo of Richard Lochhead Richard Lochhead Scottish National Party

I have not had the privilege of visiting that distillery in the member’s region, but perhaps one day I will have the opportunity to do so.

In recent years, the Scottish Government has given substantial support to the whisky sector to decarbonise its operations. The sector is playing a really important role in achieving the country’s national decarbonisation aims, and we will continue to work in partnership with it.

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