Scotch whiskey sales in the UK are reported to have dropped by one million bottles following an increase of spirits duty by 3.9% in the March budget, meaning tax makes up 80% of the cost of a bottle of Scotch.

According to the figures released by the HM Revenue and Customs, 36.7 million bottles were released for sale in the first six months of 2017 compared to 37.7 million in the same period last year.

In response to the reduced sales, the Scotch Whisky Association (SWA) has launched a new ‘Drop The Dram Duty’ campaign urging Chancellor Philip Hammond to cut excise duty on spirits to protect the UK’s food and drink businesses, which support nearly 40,000 jobs.

The SWA also emphasised fairer tax treatment to spirits in the upcoming November budget.

"Cutting tax would send a strong signal that the government believes in a world-famous UK manufacturing industry."

HMRC figures suggested a 7% decline in the revenue generated from the spirits category in the first fiscal quarter of 2017/18 to £697m from £751m in the same period last year.

SWA CEO Karen Betts said: "Philip Hammond's damaging 3.9% spirits duty hike has hit UK demand for Scotch and seen less money going to the Treasury.

"Cutting tax would send a strong signal that the government believes in a world-famous UK manufacturing industry, which supports 40,000 jobs and plays a key role in Scotland's economy."

SWA noted that a 2% cut in 2015 saw spirits revenue rise by 4% generating a £124m boost to the Treasury, and a freeze in tax rate last year has led to a revenue increase of more than 7%.