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Scotch boosts UK economy

Nicole GoebelJanuary 28, 2015

Scotch whisky accounts for a quarter of all UK food and drink exports, the Scottish Whisky Association (SWA) says. It supports more jobs than the computing, shipbuilding and iron and steel industries.

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Scotch whisky (Photo: Jeff J Mitchell/Getty Images)
Image: Getty Images

The Scotch whisky industry's overall contribution to the British economy is nearly 5 billion pounds ($7.6 billion, 6.7 billion euros) a year, according to a report by the Scotch Whisky Association (SWA).

In 2013, exports of Scotch made up a quarter of the UK's total food and drinks exports, with very job in the sector supporting another 2.7 UK jobs, including glass manufacturing and labeling. In total, the sector supports 40,300 jobs in the UK.

Exports of Scotch contribute 4 billion pounds a year to Britain's trade balance - without them the deficit would have been 16 percent larger in 2013, according to the SWA's figures. Despite a general slowdown in UK exports, the Scotch whisky industry is expanding, with around 30 new distilleries being planned or built across Scotland.

"Scotch whisky must be recognized as a cultural asset that boosts growth and jobs, supports communities and combines the best of the traditional and the modern," said SWA chief executive David Frost.

The SWA and other industry bodies say the government uses the sector as a "cash cow." Through their "Drop the duty!" campaign, they are calling for the excise duty on whisky to be cut in the next budget in March, as it is much higher (78 percent) than for other types of alcohol. They also argue that craft brewers were given tax breaks, while no such measure was introduced for craft distillers.

The SWA also points out that the sector supports jobs in both rural and urban areas and that 90 percent of the suppliers it uses are based in the UK, meaning that jobs are being kept in the country.

And, according, to the SWA, Scotch whisky workers are the second most productive in the UK, just behind those in the energy sectors and ahead of the aerospace, life sciences and digital sectors.