https://www.scottishlabourleft.co.uk/
Support Talking-up Scotland to keep rebutting the lies almost every day of the year, at https://t.co/xFcIcegHTy
From BBC Scotland, 30 January 2026:
A cut in tariffs on Scottish whisky exports to China will come into force on Monday, the prime minister has told the BBC. As a result of a new deal agreed during Sir Keir Starmer’s trip to China, import taxes on whisky will be cut from 10% to 5% – a deal the UK government said would be worth £250m to the UK’s economy over the next five years.
Scotch whisky is a key export for Britain’s drinks sector, with more than £5bn in annual exports. In recent years, China has been one of its fastest-growing markets. The prime minister said it was “hugely good news” for the sector which translates to “money, wealth and jobs back in the United Kingdom.”
Why Employment Growth Isn’t “Required”
- Tariff reductions typically lower costs for importers, which can lead to higher sales volumes, better margins for producers, or lower consumer prices in China—potentially increasing demand without necessarily scaling up production capacity or staffing immediately.
- Scotch whisky production is capital-intensive (distilling, aging, bottling) and often runs with existing infrastructure. Additional export demand might first be met through efficiency gains, overtime, or reallocating current output rather than new hires.
- The £250 million estimate (from the Department for Business and Trade) is based on methodologies for valuing market access barriers (e.g., projected export uplift), not broken down into jobs, wages, or investment requirements.
- Broader context: Recent UK excise duty hikes (e.g., 3.66% in early 2026) could offset some domestic gains, and foreign ownership of major brands means profit flows may not directly translate to Scottish job creation.
In short, while politicians (e.g., Starmer) rhetorically connect the deal to “jobs” as part of promoting trade benefits, there is no evidence—such as forecasts, commitments, or conditions in the agreement—that employment growth is required or even firmly projected. The primary evidenced outcome is enhanced export potential, with any job effects likely indirect, modest, and contingent on how producers respond to increased demand. If new data emerges (e.g., from SWA annual reports or company announcements), this could change, but as of February 2026, it’s not substantiated.
Who Benefits Most?
- Corporations: Primary winners via higher profits. Foreign owners could repatriate gains, limiting Scottish reinvestment.
- UK HMRC: Tax uplift from profits/wages supports national budgets, but Scotland’s share is indirect and diluted.
- Scottish People: Modest job sustainment/growth (e.g., in rural areas) and community spending, but per-person impact is diffuse (~£50 million/year across 5.5 million Scots = ~£9/person annually, before offsets). Public services might see minor boosts via fiscal transfers, but recent excise hikes and foreign profit leakage reduce net gains.
Key Owners and Market Share:
| Company | Headquarters | Key Brands | Market Share (Approx.) | Notes |
|---|---|---|---|---|
| Diageo | UK (London-based, multinational) | Johnnie Walker, J&B, Lagavulin, Talisker | ~36-40% of Scotch production | Largest player; profits support global operations, with dividends to international investors. |
| Pernod Ricard (via Chivas Brothers) | France | Chivas Regal, Ballantine’s, Glenlivet, Aberlour | ~20-22% | French-owned; significant Scotch distilleries in Scotland, but headquarters and major profits in Paris. |
| Beam Suntory | Japan/US | Teacher’s, Laphroaig, Bowmore | ~5-10% | Owned by Suntory Holdings (Japan); focuses on global spirits portfolio. |
| Bacardi | Bermuda | Dewar’s, Aberfeldy | ~5% | Bermuda-based; minimal direct ties to Scotland beyond production. |
| Brown-Forman | US (Kentucky) | BenRiach, Glendronach | ~2-3% | US-owned; profits flow to American shareholders. |
| William Grant & Sons | Scotland | Glenfiddich, Balvenie, Grant’s | ~8% | One of the few major family-owned Scottish firms; more benefits likely stay local. |
| Others (e.g., Edrington Group) | Scotland/International | Macallan, Highland Park | ~5% | Mix of Scottish and foreign ownership. |
Implications: Around 60-70% of Scotch production is controlled by foreign-owned firms. While distilleries are in Scotland (supporting local jobs), profits from higher China sales (e.g., via dividends and royalties) often exit the country. For example, Diageo and Pernod Ricard alone control over 55% of the market, and their global structures prioritize shareholder returns over local reinvestment. Independent Scottish-owned firms like William Grant & Sons capture more local benefits, but they represent a minority.
https://www.whiskyinvestdirect.com/about-whisky/top-10-scotch-whisky-companies
Source: https://x.com/i/grok?conversation=2018301755952439638
Support Talking-up Scotland to keep rebutting the lies almost every day of the year, at https://t.co/xFcIcegHTy
Discover more from Talking-up Scotland
Subscribe to get the latest posts sent to your email.
Talking-up Scotland 
That’s an eye-opening list at the end.
LikeLiked by 1 person
Just looks like another Labour scam on Scotland. Nothing much to gain, possible losses and SFA benefit to Scotland and the Scottish economy.
LikeLike
Kirsty McNeill saying the deal with China on the reduction on export of Scotch whisky a great deal for Scotland with exports rising its a pity the Billions made go to the English Government and not here in Scotland.
LikeLike
Whisky companies pay no tax. Use Scottish water and barley.
LikeLike