Contribution of the Scotch whisky industry to the UK economy
This Debate Pack has been compiled ahead of the debate on the contribution of the Scotch whisky industry to the UK economy to be held on Wednesday 9 March at 2:30pm in Westminster Hall. The Member in charge of the debate is Brendan O'Hara MP. Debate Packs are produced quickly after the announcement of parliamentary business. They are intended to provide a summary or overview of the issue being debated and identify relevant briefings and useful documents, including press and parliamentary material. More detailed briefing can be prepared for Members on request to the Library.
The Scotch Whisky Association estimates that the Scotch whisky industry’s contribution to the economy was £3.3 billion in 2013. This estimate suggests that the industry is bigger than the UK steel industry or the UK shipbuilding industry.
Turnover of the Scotch whisky industry in 2013 was £5 billion. It is estimated that Scotch whisky producers spend £1.4 billion on suppliers based in Scotland.
[Source: SWA, The economic impact of Scotch whisky production in the UK, 2015 p3,6. Economic contribution is Gross Value Added]
EmploymentIn Scotland, estimates suggest that the Scotch whisky industry directly employs 11,000 people. In the UK as a whole, this figure rises to 13,000 jobs directly reliant on the industry.
[Source: SWA, The economic impact of Scotch whisky production in the UK, 2015 p3]
ProductionProduction of malt Scotch whisky has increased steadily over the last few years and 285 million LPA were produced in 2014. Malt Scotch whisky accounts for just under half of all Scotch whisky production.
[Source: SWA, Statistical report 2014, p3; LPA is litres of pure alcohol]
TradeScotch whisky exports were worth £3.9 billion in 2014, 1.4% of total UK exports. However, this is 80% of Scotland’s and 25% of the UK’s total food and drink exports.
The trade surplus (exports minus imports) for Scotch whisky is the second highest of any good exported from the UK. The SWA estimates that the UK’s overall trade deficit would be 16% higher without Scotch whisky exports.
[Source: SWA, The economic impact of Scotch whisky production in the UK, 2015 p14]
TourismThere were 1.1 million visits to Scotch whisky distilleries in 2013 involving 20% of visitors to Scotland. Visiting distilleries was one of the top 20 activities undertaken by tourists in Scotland.
Among overseas visitors to Scotland, visiting distilleries was most popular among German visitors, 43% of whom participated. The European average was 34% and 32% of US visitors visited a distillery.
[Source: Visit Scotland, Whisky tourism: facts and insights, March 2015]