A tax cut on Scotch whisky has boosted sales in the UK following years of decline, new figures reveal.
Figures from HM Revenue and Customs show a 2% increase in number of 70cl bottles of the spirit released for sale last year - up to 84.9 million from 83.3 million the previous year.
The modest recovery follows the number of bottles released for sale in the UK falling by around a quarter in the past decade. In 2005 more than 107 million bottles were sold, but volumes have not broken 100 million a year since 2008.
Last year Chancellor George Osborne announced a 2% cut, a year after a spirits duty freeze and scrapping of the alcohol escalator in 2014, which the Scotch Whisky Association (SWA) said has given a "confidence boost" to the industry
The association is calling for a further 2% tax cut to help boost recovery, arguing that the current 76% tax on an average bottle of Scotch whisky is still too high.
SWA chief executive David Frost said: "A strong UK market is vital, particularly for new entrants to the industry. In the last two years, nine new distilleries have started production in Scotland and they need a strong domestic base to grow from.
"The UK is still the third biggest market for Scotch in the world, but it is fragile and competitive. That's why we want Chancellor George Osborne to support an important domestic industry by cutting duty by a further 2% next month."
A spokesman for the Treasury said: "Scotch whisky is a huge British success story; that's why we ended the spirits duty escalator and cut the duty on whisky and other spirits by 2% at last year's Budget. That means a bottle of Scotch whisky is now 70p cheaper than the duty plans we inherited in 2010.
"The Government has also introduced the spirits verification scheme. This will help protect the integrity and high reputation of Scotch whisky by helping consumers in the UK and abroad to identify genuine products and avoid fakes."
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