Autumn Budget 2025: Key measures and impact on Scotland

Chancellor Rachel Reeves has unveiled her Autumn Budget, confirming a package of tax rises, welfare changes and targeted support aimed at tackling the cost of living while keeping a tight grip on public finances.

The statement was overshadowed by an embarrassing early publication of the Office for Budget Responsibility’s (OBR) report, which revealed many of the measures around 40 minutes before Reeves stood up in the Commons. She described the leak as “deeply disappointing” but insisted the plans set out a “credible path” for economic stability and growth.

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Major tax and fiscal measures

One of the most significant decisions is the extension of frozen income tax and National Insurance thresholds until April 2031. This means pay increases over the coming years will pull more people into paying tax or into higher bands, a phenomenon often described as “fiscal drag”. The OBR estimates hundreds of thousands more people will be paying income tax or higher rates by the end of the decade.

Alongside the freeze, the Budget includes a series of targeted tax increases:

• New “mansion tax” style charge on high-value homes in England
  An annual surcharge will be introduced on properties worth more than £2 million and £5 million, levied alongside council tax and aimed at the top end of the housing market.
• Mileage-based charge for electric vehicles
  From 2028, battery electric and plug-in hybrid cars will face a per-mile levy, with the Chancellor arguing that all road users should contribute fairly to the cost of maintaining the network. Revenue will help fund doubled road maintenance budgets in England and additional investment in charging infrastructure.
• Pension salary sacrifice cap
  From 2029, a £2,000 cap will apply to pension contributions made via salary sacrifice. Contributions above that level will be taxed in the same way as standard employee pension contributions, closing off a tax-planning route that has become increasingly popular.
• Changes to ISAs
  The overall £20,000 tax-free allowance is retained, but £8,000 of that will be ring-fenced for investments rather than cash, with over-65s able to keep the full £20,000 in cash if they choose.
• Higher taxes on dividends, property and savings income, and reforms to gambling duty
  Rates on investment income and online gambling will increase, with the government expecting more than £1 billion a year from gambling tax reforms alone by 2031.

Overall, the OBR says the package of measures will raise around £26 billion a year in extra tax by 2029–30, pushing the tax take to a record 38% of GDP by 2030–31.

Reeves said:

“I know that maintaining these thresholds is a decision that will affect working people. I am asking everyone to make a contribution, while keeping every single one of our manifesto commitments. There will be no return to austerity and no reckless borrowing.”

Conservative leader Kemi Badenoch branded it a “smorgasbord of misery”, accusing the Chancellor of “tax after tax” on working households and claiming Labour had “stoked inflation” with previous decisions.

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Cost of living and welfare

On the cost-of-living front, the Budget combines targeted support with the removal of one of the most controversial welfare policies of the past decade:

• Two-child cap on means-tested benefits scrapped
  From April, the limit that restricted Universal Credit and tax credit payments to the first two children in a family will be fully removed. Reeves said she entered politics because she believes “every child deserves an equal chance”, and framed the move as a major step towards reducing child poverty.
• Fuel duty and transport support
  The 5p cut in fuel duty is extended until September next year, while the government will continue to cap bus fares and freeze rail fares and prescription charges in England.
• Energy bills
  The Chancellor confirmed the scrapping of the Eco energy scheme from April, a move she said would cut the typical household energy bill by around £150 a year.

The OBR estimates that reversing previously proposed cuts to winter fuel payments and health-related benefits, combined with removing the two-child cap, will cost about £10 billion a year by the end of the forecast period, but will increase support for hundreds of thousands of families.

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Growth, debt and productivity

The Budget was also framed as an effort to restore economic credibility while allowing room for investment:

• Growth forecasts
  The OBR now expects GDP to grow by 1.5% in 2025, slightly better than earlier projections, but growth forecasts for 2026–2029 have been revised down compared with March.
• National debt
  Net debt is forecast to reach around £2.6 trillion this year, with roughly one in every ten pounds of government spending going on debt interest. Reeves said her fiscal rules would ensure debt starts to fall as a share of GDP by the end of the decade and that the Budget balance moves into a modest surplus by 2028/29.
• Headroom
  The Chancellor confirmed she is more than doubling her “headroom” against her main fiscal rule to £21.7 billion, giving some limited space to respond to future shocks.

Reeves told MPs:

“Growth is the engine that carries every one of our ambitions forward. After 14 years of economic drift, working people deserve change. We are rebuilding stability, investing in our future and reforming the systems that held Britain back.”

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What does this mean for Scotland?

Although many of the measures announced apply UK-wide, a number of key levers – particularly income tax and some elements of welfare – are devolved or partially devolved to Scotland. The Budget has several implications north of the border:

• Barnett consequentials
  The Chancellor confirmed an additional £820 million for the Scottish Government over the forecast period, arising from increased spending on devolved services in England. Holyrood will decide how this money is allocated, potentially using it to support health, local government, economic development or targeted cost-of-living measures.
• Income tax and fiscal drag
  Scotland already operates its own income tax bands and rates, but the UK-wide freeze on thresholds and wider tax environment will still shape the overall fiscal context. Higher UK tax receipts and the evolving block grant will influence the size of the Scottish budget, while businesses and higher earners will compare the combined effect of UK and Scottish tax policies when deciding where to invest and work.
• Electric vehicle mileage charge
  The planned per-mile charge for electric and plug-in hybrid vehicles will apply to Scottish motorists as part of the UK-wide vehicle excise framework. This will matter for Scottish drivers who have adopted EVs, as well as for logistics, tourism and rural businesses that rely on road transport.
• Mansion-style property surcharge
  The new annual charge on high-value homes announced by Reeves is for England and collected via the council tax system there. Scotland has its own property tax regime and higher-rate supplements such as LBTT (Land and Buildings Transaction Tax). However, the policy adds to the debate about how higher-value property should be taxed and may feed into future Scottish discussions on wealth and property levies.
• Support for young people and skills
  Measures such as the new youth guarantee and funding for apprenticeships in England will not apply directly in Scotland, where skills and education are devolved. But the overall direction – tying welfare, training and productivity together – will be closely watched by Scottish policymakers and business groups, particularly as the Scottish Government develops its own response to sluggish productivity and labour shortages.
• Wider economic backdrop
  Slower UK productivity growth and historically high tax levels by 2030–31 will form the backdrop for Scottish businesses, especially those trading across the UK. Sectors such as energy, financial services, manufacturing and tourism will be affected by changes to consumer spending, borrowing costs and investor confidence driven by UK-wide fiscal decisions.

With Scotland’s own budget to come, the finance secretary’s decisions on tax, spending and support for business will be made against this new UK fiscal landscape.

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Industry & Expert Comments

Mark Campbell, Head of Wealth at Isio, comments “The changes announced in today’s Budget will compound the long-term financial planning challenges created by introducing inheritance tax (IHT) for defined contribution pensions in April 2027.

“By deciding to increase income tax rates on property, savings and dividends –  and from 2029,  introduce National Insurance on pensions salary sacrifice contributions above £2,000 – on top of what is already planned for next year, the Chancellor introduces a whole new set of disincentives and costs to saving and investing for the long-term, including for retirement.

“Much of the wealth that is saved, invested and eventually passed down, including through pensions, supports today’s younger generations with important life events like getting on the housing ladder, weddings and having children, which make significant contributions to the economy. Tax doesn’t have the same multiplying effect.

“We need to explore more intelligent solutions for incentivising an investing culture in the UK and, with it, long-term financial goal setting and security, particularly in retirement. Solutions should focus on the transfer of wealth to where the gaps in ability to save for the longer-term sit, ensuring that the next generations benefit from the asset growth their predecessors have benefited and which may not be repeated, be that property or indeed pensions.”

Mansion Tax is indiscriminate and flawed

“While the intent behind the ‘Mansion Tax’ may appear fair on paper, the proposal is indiscriminate and makes a flawed assumption that those living in homes worth over £2 million have the liquid wealth or income to pay such a tax. It risks penalising people who are “asset rich, cash poor,” particularly in regions like London and the Southeast, where high property values don’t necessarily reflect high incomes. Many will still have significant mortgages, especially as fixed-rate terms end and interest rates bite, while property values themselves could be negatively affected.

“It also fails to account for circumstance or tenure. Someone who bought their home decades ago and now lives on a pension could face punitive costs simply for staying put and, if forced to move, they would face further burdens through stamp duty and potential capital loss. The measure also raises questions of fairness between those who own a single property and others with multiple, smaller assets.

“For some, particularly those nearing retirement or with limited pension provision, this could accelerate downsizing and disrupt family and community ties. And at a broader level, it risks sending a message that the UK is a less attractive place for wealth creators, entrepreneurs and investors. We should be encouraging people to stay, invest, and contribute to a thriving economy, not pushing them away. People don’t stay for the weather; they stay for opportunity, stability, and a fair, predictable tax environment.”

Reduced cash ISA limit will have unintended consequences

“The reduction in the cash ISA limit from £20,000 to £12,000 may encourage some individuals to invest for the future, which is a good thing so long as they have suitable time horizons, understand how to invest and the risks associated.

“But there is also the risk this will shoe-horn people without the knowledge and experience into the investment market, or detrimentally cause them to place more of their money into regular savings accounts where the tax rate is now set to increase.

“Ultimately, we need to encourage an investment culture through education, which should start with children in schools. In the meantime, there should be continued focus on ensuring people have access to personal advice that ensures that they make informed and well understood decisions.”

Matthew Amis, Investment Director – Rates Management at Aberdeen Investments, comments on gilt market reaction to the Budget:

“This was never going to be a budget for growth or to release animal spirits, this was a budget to attempt to build credibility. Credibility in the gilt market and credibility within the Labour party.  Is it the credibility builder we were looking for? No, but is this a budget to cause a gilt market storm? Again no.

“The fiscal headroom increase is welcome, but the fiscal consolidation is back-loaded. This is not a budget that finally faces up to the somewhat fraught fiscal situation the UK finds itself in. But unlike in recent years, it doesn’t materially make it worse.

“The inflation busting measures again are welcome, but will this mean the Bank of England materially accelerate interest rate cuts? Probably not.

“In terms of gilt supply, no real increase, which in itself is a positive story.

“The limited gilt market reaction so far is probably fair. We move on.”

The Scottish Passenger Agents’ Association (SPAA)  Vice President Alan Glen says,

“The increasing burden of National Insurance and taxation is now a direct barrier to employment. Every time the cost of employing someone rises, it becomes harder for travel businesses to take on new staff, to invest in apprenticeships or to grow. It’s sucking profit out of the sector — and then taxing what’s left.”

The SPAA represents Scotland’s travel professionals, who collectively contribute over £3.5 billion annually to the Scottish economy and support more than 30,000 jobs across the country. The association said that small and medium-sized travel firms, particularly those maintaining a high street presence, are being hit hardest.

“There’s no support to help people into work, and no assistance for gaining the qualifications and training needed to grow skills in the travel trade,” said Glen. “Meanwhile, high street businesses that provide local jobs and personal service are being decimated by global online giants that are not taxed in the same way. It’s an uneven playing field — and it’s punishing the very businesses that are committed to staying local, paying their fair share and supporting communities.”

The SPAA is calling on both the UK and Scottish Governments to take urgent action to support small travel businesses by:

• Reviewing employer National Insurance costs and introducing incentives for job creation.
• Reforming business rates to support high street travel agencies.
• Providing targeted skills and training support for travel and tourism careers.
• Maintaining competitive domestic Air Passenger Duty (APD) to protect Scotland’s internal connectivity.

“The travel industry doesn’t want handouts — it wants a fair chance to compete,” said Glen. “If governments are serious about creating growth, they must stop penalising the very employers who are trying to deliver it.”

Offshore Energies UK (OEUK) has condemned the government’s decision in today’s Budget to reject replacement of the Energy Profits Levy (EPL) in 2026 – a move that will cost tens of thousands of jobs, cripple investment, and undermine Scotland and the UK’s energy security. 

OEUK will now meet its 450 member companies for urgent talks – including operators, contractors, and supply chain firms working across oil and gas, wind, hydrogen and carbon capture projects – all critical to the UK’s energy future. Together they support the livelihoods of over 200,000 people whose jobs now face growing risk as Britain turns to imported energy to meet demand. 

OEUK is also seeking an immediate meeting with the Chancellor to explore every option to reverse this policy and prevent further economic and industrial damage. 

David Whitehouse, OEUK Chief Executive, said: 

“Today, the government turned down £50 billion of investment for the UK and the chance to protect the jobs and industries that keep this country running. Instead, they’ve chosen a path that will see 1,000 jobs continue to be lost every month, more energy imports and a contagion across supply chains and our industrial heartlands.  

“This is not over. We will keep pressing for change – this industry’s people, their communities and the value of this strategic national asset are too important to dismiss. The Government was warned of the dangers of inaction – they must now own the consequences and reconsider. 

“The future of North Sea energy depends on investment, which won’t come without urgent reform of the windfall tax. If the levy stays in place beyond 2026, projects will stall and jobs will vanish, no matter how pragmatic licensing policy becomes. Fixing this outdated tax is the key to unlocking billions in investment across the UK’s entire energy mix. 

“Waiting four years for reform of this tax is too late. The North Sea continues to be one of the least competitive places for our industry in the world. We put forward a pragmatic plan: a reformed, permanent windfall tax in exchange for billions in UK investment, more tax paid, and jobs sustained. Government said no.” 

The government acknowledges the UK needs oil and gas for decades to come. As renewables roll out, 75 per cent of the UK’s energy still comes from oil and gas and 10-15 billion barrels are required by 2050. OEUK has shown how half of this amount could be produced at home with tax reform in tandem with a pragmatic approach to licensing. Otherwise imports will continue to rise as jobs, projects and investment move overseas. 

OEUK is reviewing both the full detail of the Budget and the government’s latest guidance on licensing, and the Future of the North Sea consultation outcome, announced today. OEUK has consistently advocated for a pragmatic outcome on licensing. 

No new exploration wells have been drilled in 2025 and domestic oil and gas production has fallen by 40% in the last five years and is on course to halve again by 2030. This is an accelerated decline driven by government policy, not geology. 

Scottish Conservative MP for Gordon and Buchan, Harriet Cross, said: “It’s outrageous that despite warnings of 1,000 jobs being lost every month, this Labour UK Government has not scrapped the Energy Profits Levy.

“This is a horrendous announcement that could sound the death knell for the industry.

“Highly skilled oil and gas workers are now living in fear as a direct result of Labour’s shameful, idealistic desire to close down this vital sector.

“At the heart of this are people with families who have given decades to an industry that is being destroyed by this Labour government.

“The Chancellor’s budget is economic sabotage that is not worth the paper it’s written on and is an absolute betrayal to the North East of Scotland.”

Greig Brown, Mortgage Director, Aberdein Considine, said: “If interest rate cuts follow tighter fiscal policy, we expect a positive shift in the UK mortgage market. Lower borrowing costs will make homeownership more accessible, particularly for first-time buyers who have faced affordability challenges in recent years. Home movers will also benefit from improved affordability, creating opportunities for upsizing or relocating that may have been out of reach previously. Existing mortgage holders stand to gain significantly, as refinancing becomes more attractive and monthly payments ease. While economic uncertainty remains, the combination of falling rates and stabilising inflation should help restore confidence and encourage more buyers back into the market. Overall, these changes could mark the beginning of a gradual recovery in housing activity, with demand strengthening as affordability improves.”

Dylan Harper is Chief Executive at Strategem, one of Scotland’s leading international business consultancies specialising in strategy and export. Dylan commented: 

“The decisions made by the chancellor in today’s UK Budget will bring real consequences for both private sector businesses and public bodies across Scotland, at a time where many organisations are already managing really tight margins.

“For Scottish employers and public sector bodies, sustained inflation, changes to pension contributions and the confirmed freeze in income tax thresholds (should Holyrood follow suit) creates employer cost pressures which will make it more difficult for businesses to grow if not actively managed. To be prepared and maintain competitiveness, businesses should carefully consider staffing structures now. This might include scenario planning, competitor benchmarking or identifying investment opportunities to strengthen operations.

“The new enterprise incentives such as the three-year stamp duty holiday for London Stock Exchange listings present promising opportunities for expansion and capital raising, particularly for ambitious businesses looking to access public markets. That being said, the reality is that Scotland’s economy is built on micro and small businesses that are more exposed to tax changes and higher operational costs.

“Strong leadership and clear planning have never been more important. Our immediate focus is to support clients in navigating their operations within an increasingly complex fiscal landscape.”

James Burgess, Head of Commercial and Insolvency expert at Atradius UK, says:

“Personal tax changes, including freezing all personal income tax thresholds until 2030-31, will potentially curb spending and weaken demand,  further pressuring business revenues at a time when businesses are already stretched by weak demand and high costs.

Companies should act quickly to protect their working capital – tightening credit control, reviewing payment terms, and leverage trade credit insurance to safeguard against defaults in an uncertain trading landscape.

Our latest Resilience Gap Report shows how far emergency cash reserves have already been eroded by rising risks, underlining that higher tax burdens may hit firms at a moment when their financial buffers are at their weakest.”

Nicholas Hyett, Investment Manager at Wealth Club said:

“There’s a certain logic to ISA reform. Anyone who hits the maximum £20,000 cash ISA allowance year-after-year should really be thinking about investing some of that in the stock market.

However, the reality is that this policy needn’t affect your savings decisions at all. Money market and other short dated fixed income funds available in a stocks & shares ISA mean investors can effectively hold cash within a stocks & shares wrapper.

On the plus side this means investors really don’t need to worry too much about this ISA reform – though banks may find the fall in cheap deposits more problematic. It’s less good news for the Chancellor though. The reform was designed to encourage investment in UK listed companies, but she may find that she has positioned herself against the UK’s army of committed savers and not achieved much at all.”

Marc Crothall MBE, Chief Executive of the Scottish Tourism Alliance, said:

“Today’s Budget is a major setback for Scotland’s tourism and hospitality sector. At a time when businesses are already at breaking point, the Budget adds further cost pressures and fails to deliver the targeted support urgently needed to protect jobs, rebuild confidence and maintain the viability of thousands of operators. 

The sector needed a Budget that reduced the cost of employment, strengthened consumer confidence and supported recovery. Instead, today’s measures risk making an already difficult outlook even more precarious.

The STA is fully supportive of better pay for the sector’s workforce in making it a more attractive and valued career choice, but raising the national minimum wage for 18 to 20-year-olds above the inflation rate will only add to business costs and once again make it challenging for our sector businesses to invest in their product to stay competitive.

There is a risk that the rise in the Minimum Wage will instead act as a disincentive to employ less experienced young people, having a detrimental impact on fostering new talent in the sector.  

The Scottish Tourism Alliance survey carried out earlier this month exposes the depth of the challenge: more than 70% of businesses expect trading conditions to worsen, operating costs (59%) and taxation (50%) remain the biggest threats, and 15% expect to make redundancies within six months. Businesses are running extremely lean, with staff covering multiple roles, reduced opening hours and stripped-back services becoming the norm.

With today’s announcement that personal tax thresholds will be frozen for a further three years, pulling more people into higher tax brackets, household disposable incomes will come under even greater pressure, further weakening domestic tourism demand at a time when the sector can least afford it.

Following the Chancellor’s announcement on business rates for hospitality businesses in England, we would urge the Scottish Government to deliver a permanent reduction in business rates for businesses of all sizes in its 2026-27 Budget announcement. This would give much-needed certainty and ensure our businesses can effectively compete with their counterparts over the border. 

With business rates being reduced for retail, hospitality and leisure properties in England, there will now be even greater pressure on the Scottish Government to ensure that businesses north of the Border are not placed at a further competitive disadvantage.

The introduction of new powers for visitor levies in England also raises serious concerns about the UK’s global competitiveness, making it even harder to attract international and domestic visitors in an increasingly competitive global market.

The reduction in writing-down allowances in corporation tax announced today will further constrain the ability of businesses to invest at a time when 46% have already told us they are delaying or cancelling investment.

The decision to increase alcohol duty in line with inflation will also have a knock-on impact on our valuable Scotch whisky sector, which is already grappling with US tariff changes. As a major driver of tourism for the country and a lifeline for many communities, this will negatively impact the wider tourism sector, including the whisky industry’s ability to invest in its visitor attractions.

Today’s Budget also places further pressure on household finances. Any reduction in disposable income directly affects discretionary spending, and tourism and hospitality businesses feel those impacts first. With 72% of operators expecting to raise prices and 46% delaying investment, reductions in consumer spending power will translate into lower bookings, shorter stays and reduced visitor expenditure.

Tourism is a cornerstone of Scotland’s economy. The visitor economy generated £10.8 billion last year, supports around 245,000 jobs and sustains more than 16,000 businesses. Any further cost pressure, whether through taxation, employment costs or regulation, risks accelerating the loss of capacity, reducing job opportunities and undermining Scotland’s ability to compete.

Scotland’s tourism and hospitality sector urgently needs a predictable, competitive and supportive fiscal environment. Today’s Budget does not provide that. Instead, it intensifies uncertainty and does little to create the conditions required for businesses to retain staff, invest, grow and deliver the world-class visitor experience Scotland is known for.

We will now review the detail of the Budget and communicate its implications for the sector. Our focus will be on pressing the UK Government to address the escalating cost burden on employers and to recognise the impact of today’s decisions on tourism demand and competitiveness. As we look ahead to the Scottish Budget in January, we will also be urging the Scottish Government to deliver a Budget that stabilises the sector, prevents a new wave of job losses, which will hit Scotland’s young people in particular, averts further business closures and takes decisive action to reverse Scotland’s declining competitiveness on the world stage.”

Gary Smith, GMB General Secretary, said:

“Today’s budget looks like the final nail in the coffin for the Conservative’s failed austerity project.

“Key public services, essential national infrastructure, and communities across the UK suffered deep wounds because the Tories made the wrong economic choices – we must never go back to those dark days.
 
“The challenge for Labour is to grip the task of rebuilding our economy and country, lock in essential investment to create growth, and start bringing a bit of hope to people.”

Alan Stewart, Aberdeen-based partner at MHA, accountancy and business advisory firm:

“With no movement on the Energy Profits Levy, the uncertainty facing the sector remains unchanged. Companies cannot plan effectively without a stable long-term framework, and today’s outcome does little to address the hesitation already evident across investment decisions. A 78% tax rate continues to cast a long shadow over activity, pausing projects, slowing commitments and weakening confidence throughout the UK’s wider energy ecosystem.

“As things stand, the industry is left without the clarity required to support a balanced energy mix or deliver a fair and orderly transition. Stability is essential for maintaining secure domestic supply and for giving businesses the confidence to invest in both current production and future technologies. 

“The effects extend well beyond operators. Local businesses, supply chains and regional economies across the UK all feel the impact when uncertainty endures. Without a consistent and durable approach, the UK risks prolonging a period of caution at a time when the demands on energy security and long-term planning have rarely been greater.”

Robert Holland, Head of Employment Law, Aberdein Considine, said: “This change to pension salary sacrifice schemes represents a significant shift in how these arrangements are treated and will materially affect how employers structure pension benefits over the next few years.

“For many organisations, salary sacrifice has been a tax-efficient way to enhance employees’ retirement savings while reducing National Insurance costs. The proposed changes remove much of that efficiency, particularly for higher earners and senior staff.

“From a legal perspective, employers need to proceed carefully. Salary sacrifice arrangements are contractual in nature, meaning any changes to pension contributions or remuneration structures will likely require consultation and, in some cases, employee consent. We expect to see a rise in employers reviewing employment contracts, benefit policies and remuneration frameworks as they seek to manage increased costs.

“There is also a potential employee relations risk. Altering established pension arrangements can impact morale, retention and trust, especially if changes are perceived as a reduction in overall reward. Employers will need to balance commercial realities with transparent communication and fair process.

“The key message is preparation. While implementation is scheduled for 2029, employers should start planning now by reviewing pension schemes and considering whether alternative reward structures might offer better long-term value.”

James Kipping, head of private client tax at MHA says

“This long awaited and widely trailed (and now leaked) Budget held few surprises.

Backing off from the more fiscally sensible rise in income tax that was briefly trailed earlier in the month Rachel Reeves was forced into a hotchpotch of tax rises which might have pleased her backbenchers but will not play well for those who will bear the brunt of the income tax rises. This is a tax rise for pensioners.  It does partially balance out the inequality between the taxation on earned and unearned income, although it adds more complexity.

Is it now the time for a longer-term plan to merge NIC and Income tax? This would arguably reduce the inequality in the tax system and enhance tax revenues other than from working people.

If this was designed as a Budget to save the Chancellor’s career it might well have succeeded but at what cost?”

Steve Hitchiner, Chair of the Tax Group at the Society of Pensions Professionals (SPP) said;

“Abolishing salary sacrifice for pensions will affect the take home pay of millions of employees – especially basic rate taxpayers – and is a tax on working people, in spirit if not in name. It is also another sizeable cost to employers and, perhaps most importantly its removal will reduce pension saving.”

William Wemyss, director of Kingsbarns Distillery said:

“As a small, family-run distillery, we’re deeply concerned by the prospect of yet another rise in alcohol duty. After two years of steep increases, our industry is already under real pressure. A further uplift risks compounding that strain for producers and consumers alike.

“At Kingsbarns Distillery, we invest patiently and locally: in our people, in our casks and in crafting the elegant Lowland whisky we’re proud to share with visitors from around the world. But relentless duty increases make long-term planning harder for independent distillers who don’t have the scale to simply absorb rising costs.

“A 4.5% hike would push prices up again just as households are trying to manage higher living costs. It would undermine one of the few sectors where Scotland continues to lead globally and where small producers play a vital role in sustaining rural economies, tourism and skilled jobs.

“A freeze would give our sector the stability it needs to keep investing, keep creating exceptional spirits and keep contributing to Scotland’s reputation on the world stage. We urge the Chancellor to recognise the importance of family-run distilleries and take action that supports growth rather than constrains it.”