THE volume of Scotch whisky released for sale in the UK surged by 5.6 per cent to 547.2 million bottles in 2016, signalling the recovery of the spirit in its domestic market is gathering pace.

Industry body the Scotch Whisky Association (SWA)said the figures, the most up to date available from Her Majesty’s Revenue and Customs, underline the case for a further duty cut for whisky at the Budget on March 8.

UK sales grew in 2015 for the first time since 2010, with the SWA stating the moves towards a “fairer and more competitive excise regime” in recent Budgets have boosted the industry. Excise duty was frozen last year, which followed a two per cent cut in 2015. Duty had been frozen and the controversial alcohol duty escalator were scrapped in 2014.

The SWA declared a two per cent cut at next month’s Budget would provide a further boost to a “strategically important British industry”. And it said an additional cut would boost Treasury coffers, noting spirits revenue increased by £123 million to £3.15 billion in 2015/16 after the two per cent cut two years ago.

Julie Hesketh-Laird, acting chief executive at the SWA, said: “A strong UK market is vital, particularly for new entrants to the industry. In the last few years, 14 new distilleries have started production in Scotland and a further eight are set to open this year. They need a strong domestic base to grow from.

“The UK is one of the biggest markets for Scotch in the world, but it is fragile and competitive, particularly so in the context of the historic change Brexit will bring.”