Chamber and committees

The Scotch Whisky Association recently released new data that shows that more than 1,000 jobs have been lost in the Scotch whisky industry since the most recent United Kingdom budget. In addition to the excise duty increase, the UK Labour Government introduced a national insurance increase, and energy prices remain too high, impacting energy-intensive industries that can access no support.

Ahead of the next UK budget, what representations will the Scottish Government make to the UK Government to ensure that our economy and businesses are better supported to weather difficult economic headwinds?

Before I begin my speech, I say to Alexander Stewart that data from His Majesty’s Revenue and Customs shows that, as a result of Brexit, the number of UK companies exporting to the EU has dropped from 120,000 to 100,000.

I should also mention that I am the co-convener of the cross-party group on Scotch whisky.

As Kenny Gibson indicated earlier, in the past week it has been announced that Scottish Enterprise-supported companies have reported a planned increase in international sales of more than £2 billion, which is among the highest annual growth figures ever achieved. That builds on the HMRC’s UK regional trade figures for quarter 1 of 2025, compared with the same time last year, which highlight that Scotland is the only country in the UK to have experienced an increase in the value of exported goods while all the other UK countries have experienced decreases. To be clear, England had a 3 per cent drop in exports, Northern Ireland had a 3.7 per cent drop and Labour-run Wales had a drop of more than 20 per cent. Scotland is also the only country in the UK where exports exceed imports, giving us a positive trade surplus in goods, which helps to support our economy.

That comes after a difficult period when our economy has faced the effects of Brexit, Covid and the war in Ukraine, which have impacted our ability to trade seamlessly with our European partners. Many sectors of our economy, despite struggling with Westminster’s national insurance hikes, are making record export sales. For example, Scottish salmon, which is now the UK’s top food export, had sales worth £844 million in 2024. However, those industries that are energy intensive, such as the whisky industry, have no access to UK Government support, despite the high excise duties, job tax hikes, high energy costs and £4 million per week of tariffs. The Scotch Whisky Association’s global export figures for 2024 show that the value of whisky exports stood at £5.4 billion, which is a decrease of 3.7 per cent on the 2023 export value.

I therefore welcome the Scottish Government’s six-point export plan, which will include more overseas trade missions and exporter showcase events, including a US export plan to identify states that offer the best markets for Scottish products, as well as increased funding for exporters in the technology, life sciences, renewables and hydrogen sectors. In addition, Scottish Development International has more than 30 offices around the world, with staff ready to help international companies to buy goods or expertise from Scottish suppliers, ranging from digital expertise to high-quality food produce. The Scottish Government is acting to support our exporters, but we also need the UK Government to act in those areas that are reserved to Westminster.

Despite the volatility in the export market, our service industries are also weathering the storm. Our financial services sector, including banking, insurance and asset management, is the largest hub outside London and it has delivered more than £10 billion in exports, with Edinburgh as a primary driver. Edinburgh’s tech sector, which is centred around CodeBase, the UK’s largest technology incubator, supports a dynamic software and information technology industry. The Scottish sector is worth almost £7 billion to the Scottish economy, and more than 60 per cent of those companies are now exporting across the world.

It is not all good news, however.

To ask the Scottish Government, regarding any impact on its energy policy and strategy, what its response is to Ofgem’s announcement on 27 August regarding the energy price cap. (S6O-04895)

Scotland produces far more electricity than it consumes, but nearly half a million Scots are living in extreme fuel poverty. What financial support will be available from the Scottish Government this winter for people who are struggling to pay ever-increasing energy bills? I thank the cabinet secretary for welcoming Advice Direct Scotland’s call for a social energy tariff.

I have a wee supplementary on the back of what Marc Crothall said.

It will be. I have had a quick look at accommodation in Edinburgh for October, which is not high season. Comparing three-star and five-star hotels in October, prices range from £160 to £370. A 5 per cent charge is £8, rising to £18. Are we honestly saying that somebody who is prepared to pay £370 for a room in Edinburgh will walk away because they are being asked for an extra £18 in local tax?

Thank you.

I accept that.

Actually, Willie Coffey has covered the questions that I was going to ask.

I want to ask a quick question of clarification. The international passenger survey for 2024 highlighted that there were 4.4 million visitors to Scotland and that they spent £4 billion. That represented a 9 per cent increase in trips and an 11 per cent increase in spend compared with 2023. You said that Edinburgh was becoming more of an international destination. Has there been any analysis of what the impact would be on the domestic tourist market, given that businesses and domestic tourists are facing the same challenges of food inflation, higher energy costs and so on? Has there been any analysis to say that the introduction of the visitor levy could have more of an impact on domestic tourists?