According to new revenue modelling calculated by economic consultants on behalf of the Scotch Whisky Association (SWA), nearly £200m can be added to the UK Treasury if the excise tax on spirits is cut by 3.9% in the upcoming budget.

SWA CEO Karen Betts said: “These figures show that cutting spirits duty in the budget will be good for the Treasury, good for the UK economy, and good for our world-famous Scotch Whisky industry.

“The Chancellor has the chance both to back a leading UK manufacturing industry, which supports 40,000 jobs and to generate more money for public services.

“Cutting spirits duty in the budget will be good for the Treasury.”

“We are urging him to drop the dram duty and show how much the government believes in home-grown global success stories such as Scotch.”

The research suggests that a 3.9% cut would generate an additional £42m in tax revenues next year.

The analysis also showed that if the government goes ahead with its plans, it could see a decrease of £290m in revenues by 2022-23.