United Kingdom trade deficit hits £8 billion as whisky industry seeks tax relief

The United Kingdom's trade deficit reached £8 billion in the three months ending August 2026, according to data from the Office for National Statistics. This represents a £1.4 billion deterioration from the previous quarter, driven largely by a £59.1 billion deficit in goods trade.

Simultaneously, the Scotch Whisky Association (SWA) is campaigning for a reduction or freeze in alcohol excise duties ahead of the October 28 budget. The industry argues that a cumulative 17% tax increase over the last three years has failed to boost revenue. Official figures show that excise tax revenue from spirits fell to £4.059 billion in the 2025/26 fiscal year, a 2.3% decrease from the previous year and £1.1 billion below the Office for Budget Responsibility's 2023 projections.