Scottish Affairs Committee Launches Inquiry Into Scotch Whisky Tariffs

Key Points

• The Scottish Affairs Committee has opened a formal inquiry into how trade policy, tariffs and domestic regulation are shaping the future of Scotch Whisky.
• Scotch Whisky supports around 41,000 jobs across Scotland and remains one of the UK’s largest single drinks export categories.
• Approximately 90% of production is sold overseas, chiefly to markets including the United States and India, leaving the sector highly exposed to global trade shifts.
• Exports peaked at £6.2 billion in 2022 but fell to £5.6 billion in 2023, with further declines recorded in early 2024.
• Domestic pressures cited include rising energy costs, workforce shortages and the rollout of the Deposit Return Scheme.
• The Committee will examine both export performance and the impact of regulatory and operational pressures at home.
• Written evidence submissions are invited, with a deadline of 18 September 2026.
• Committee Chair Patricia Ferguson has urged industry experts to contribute evidence to inform the inquiry’s findings.

Westminster (Britain Today News) July 16, 2026 – The Scottish Affairs Committee has launched an inquiry examining the future of Scotch Whisky, exploring how trade policy, tariffs and domestic regulation are affecting one of Scotland’s most internationally recognised industries. The inquiry will scrutinise the health of the sector, its exposure to global markets and the domestic cost pressures bearing down on producers, at a time when exports have fallen from record highs recorded just a few years ago.

What is the Scottish Affairs Committee investigating?

The Scottish Affairs Committee has confirmed that its inquiry will focus on the future of Scotch Whisky, with particular attention paid to how trade policy, tariffs and domestic regulation are shaping the sector’s prospects. The Committee has stated that it intends to explore the health of the industry and to consider how trade policy and market access negotiations influence Scotch Whisky’s export performance. Alongside this, the inquiry will investigate how domestic regulatory and operational pressures are affecting producers across the country. The Committee has published full terms of reference, setting out the specific questions and themes it wishes to explore, and is now calling for written evidence from those with relevant expertise or interest in the sector.

Why is Scotch Whisky important to the UK economy?

Scotch Whisky is described as one of Scotland’s most globally recognised products and one of the UK’s largest drink exports, contributing billions of pounds to the economy each year. The industry supports around 41,000 jobs across Scotland, many of them in rural and remote communities where alternative large-scale employment can be limited. Beyond its direct economic contribution, whisky production is also framed as an important part of Scotland’s cultural identity, as well as a significant draw for tourists visiting distilleries and heritage sites across the country. Its dual role as both an economic driver and a cultural export gives the sector a prominence in policy discussions that extends well beyond the drinks industry alone.

How much of Scotch Whisky production is exported abroad?

According to the figures set out by the Committee, around 90% of Scotch Whisky production is sold abroad, underlining just how dependent the industry is on international markets rather than domestic consumption. Key export destinations include the United States and India, two of the largest and most closely watched markets for the sector. This heavy reliance on overseas sales means that the industry’s fortunes are closely tied to the state of global trade relationships, tariff regimes and market access arrangements negotiated by the UK government. Any disruption to trade with major markets, whether through new tariffs, regulatory barriers or wider geopolitical tensions, therefore has an outsized effect on the sector compared with industries that rely more heavily on domestic sales.

Why have Scotch Whisky exports declined in recent years?

Export figures cited in the inquiry show a marked decline from the sector’s recent peak. Scotch Whisky exports reached £6.2 billion in 2022, representing a high point for the industry, before falling to £5.6 billion in 2023. The Committee has further noted that additional declines were recorded in early 2024, suggesting that the downward trend has continued rather than stabilised. This pattern of falling export values comes against a backdrop of recent global uncertainty and trade barriers, which the Committee has identified as having created challenges for the sector. The inquiry is expected to probe the specific causes behind this decline, including the role played by tariffs, changing consumer demand in key markets and broader disruption to international trade.

What domestic challenges are affecting the industry?

While much of the inquiry’s focus will be on international trade, the Committee has also highlighted a range of domestic challenges facing Scotch Whisky producers. These include rising energy costs, which affect the intensive production processes involved in distilling, and workforce shortages, which have been a persistent concern across parts of the Scottish economy. The Committee has specifically named the introduction of the Deposit Return Scheme as one of the domestic pressures the inquiry will examine, reflecting concerns within the industry about the operational and financial implications of new packaging and recycling requirements. Taken together, these domestic factors are presented as compounding the external pressures created by global trade conditions.

What will the inquiry focus on?

The Committee has set out two broad strands for its inquiry. The first strand will examine the health of the Scotch Whisky sector and consider how trade policy and market access negotiations shape its export performance, looking closely at the role of tariffs and international agreements. The second strand will investigate the impact of domestic regulatory and operational pressures on the industry, encompassing issues such as energy costs, staffing and the Deposit Return Scheme. By combining these two strands, the inquiry aims to build a fuller picture of the pressures facing the sector, both from beyond UK borders and closer to home, rather than treating trade and domestic policy as separate issues.

How can businesses and individuals contribute evidence?

The Scottish Affairs Committee has invited written evidence submissions as part of the inquiry, with those wishing to contribute given a deadline of 18 September 2026 to submit their views. The Committee has published full terms of reference alongside the inquiry launch, providing prospective contributors with guidance on the specific questions and areas the Committee wishes to explore. This is intended to help ensure that submissions are relevant and can be used effectively to inform the Committee’s eventual findings and recommendations. The call for evidence is open to a wide range of contributors, including industry representatives, trade bodies, businesses, workers and any other individuals or organisations with relevant expertise or experience of the sector.
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What has the committee chair said about the inquiry?

Patricia Ferguson, Chair of the Scottish Affairs Committee, set out the reasoning behind the inquiry and its objectives. She said:

“Scotch whisky is an iconic product and one of the UK’s flagship exports, supporting thousands of jobs and making a significant contribution to Scotland’s economy, particularly in rural communities. However, the industry is operating in an increasingly challenging environment, facing trade uncertainty as well as rising costs and regulatory pressure at home.”

Ferguson added:

“Our inquiry will examine the opportunities and challenges facing the Scotch whisky sector, and how the UK government can ensure it benefits from tariff reliefs and wider trade policy. We’ll also look at domestic pressures, such as the introduction of the Deposit Return Scheme, workforce challenges and rising energy costs. I encourage anyone with expertise in this area to submit evidence to our inquiry and inform our work.”

What challenges does the Deposit Return Scheme pose for producers?

The Deposit Return Scheme has been specifically flagged by the Committee as one of the domestic operational pressures facing the Scotch Whisky industry, placed alongside rising energy costs and workforce shortages as a factor the inquiry will investigate. While the Committee’s announcement does not set out detailed criticisms of the scheme, its inclusion among the named domestic pressures signals that its practical and financial implications for producers will form part of the evidence-gathering process. Given that whisky bottling and packaging are central to how the product reaches both domestic and export markets, any regulatory changes affecting containers and recycling are likely to be of direct relevance to producers responding to the inquiry.

What happens next in the inquiry process?

With the inquiry now formally launched and terms of reference published, the next stage will see the Committee gather written evidence from interested parties ahead of the 18 September 2026 deadline. This evidence is expected to feed into further stages of the inquiry, potentially including oral evidence sessions with industry figures, trade experts and government representatives, before the Committee draws conclusions and makes recommendations. The findings of the inquiry are likely to be closely watched by the Scotch Whisky industry, given the sector’s exposure to both international tariff regimes and domestic regulatory change, and could ultimately inform how the UK government approaches trade negotiations and policy decisions affecting one of the country’s most valuable export industries.