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Insider UK
Lifestyle
Chris McCall & Peter A Walker

Brexit costing Scotch whisky industry '£5 million per week' as exports drop

The Scotch whisky industry is losing £5 million per week as a result of Brexit, the Scottish National Party has claimed.

The SNP cited House of Commons research which showed exports of whiskies to the EU were £105.7m lower in January to May 2021 than during the same period in 2019.

In the immediate aftermath of the EU transition deal, the whisky industry saw its exports drop to £135.9m lower than in the same period in 2019, which works out as £10.4m a week lower on average.

In 2019, Scotch whisky accounted for three quarters of all Scottish food and drink exports, 21% of all UK food and drink exports, and 1.4% of all UK goods exports.

But the UK Government claimed the SNP's interpretation was "misleading" and insisted it was too early to tell the impact of Brexit on exports.

SNP MP Brendan O’Hara said: “Scotch whisky plays a crucial role in the success of Scotland’s food and drinks sector and our economy given it accounts for 75% of the sector - so for the industry to be losing £5m per week is devastating.

“The triple whammy of a Brexit that Scotland didn’t vote for, the pandemic and the US tariffs - which have thankfully now been lifted but not before they cost the industry at least half a billion pounds - have dealt a hammer blow to the Scottish whisky sector.

“All in all the losses to Scotch Whisky exports have been eye-watering, as a result of a Tory Brexit and the UK government’s lack of action over the US tariffs - it is beyond time the UK government made amends for this.

“Going forward, we need to see continued and intensified support for Scotch whisky and that includes a response to the long-awaited Treasury review of alcohol duty.”

A UK Government spokeswoman said: “The impact of the pandemic and restrictions across Europe has affected trade and depressed demand, so it is too early to draw firm conclusions on the impacts of our new trading relationship with the EU.

“The latest export statistics for May also show that the value of goods exports to the EU was higher than the monthly average for 2020.

“We continue to help businesses get the support they need to trade effectively with Europe, including by running export helplines and webinars with experts, providing financial support to SMEs and delaying the introduction of full import controls.

“Industries can also seize new opportunities as we strike new trade deals and reduce trade barriers around the world, as we did when we secured the suspension of the US’ retaliatory tariffs for the Scottish whisky industry earlier this year.”

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