The Scotch Whisky Association (SWA) described the RPI inflation-linked rise – the third increase in two years – as a severe blow to a sector already grappling with business closures and stalled investment.

Mark Kent, chief executive of the SWA, argued that the UK government is ignoring the economic reality: “The previous 3.65% increase to spirits duty has reduced spirits revenue by 7% – a loss to the Treasury of £150m.”

“The government cannot expect the Scotch Whisky sector to just keep delivering growth, both at home and on the world stage, if the conditions which support growth are not nurtured,” Mr Kent stated. He noted that the industry had not asked for a tax cut, but simply for a freeze to provide “breathing room” for a critical Scottish industry.

William Wemyss, director of the family-run Kingsbarns Distillery, echoed these sentiments, highlighting the disproportionate impact on independent producers. He pointed out that official figures released alongside the Budget predict a fall in alcohol revenue despite the higher tax rates.

“Each new rise in duty makes it harder for independent distillers like us to plan with confidence or absorb additional costs,” Mr Wemyss said.

He added: “This rise also arrives at a time when pubs, bars and restaurants are facing challenging trading conditions. Any additional increase in the cost of doing business makes it harder for them to recover and thrive.

“We had hoped for a pause to give businesses the stability to invest for the future. We continue to urge the government to recognise the importance of independent distilleries and to create conditions that support growth, quality and jobs rather than making those ambitions harder to realise.”