The Annandale Distillery will reopen with the aid of a £150,000 Regional Selective Assistance (RSA) grant, creating 18 new jobs in producing malt whisky.

Mather said the venture gave a “significant boost” for both the Dumfries and Galloway economy and Scotch whisky generally, which he says has been “hit hard by punitive increases in duty imposed by the Treasury.”

He continued:

"In the absence of tax raising powers, Regional Selective Assistance is a scheme which helps Scottish businesses to flourish, encourages investment and stimulates job creation.

"I hope that RSA will prove a valuable tool in creating new jobs and resurrecting whisky production at Annandale and I wish those involved with the project every success."

Project Director David Thomson said they aim to create an “interesting and meaningful brand” in Annandale.

"Having conducted much of the detailed early planning, our project is now moving into the more advanced stages of design. This represents a significant private business investment in Scotland which, coupled with an indication of up to £350,000 from Historic Scotland and the offer of Regional Selective Assistance from the Scottish Government, will deliver real economic benefits and create new Scottish jobs."

Campbell Evans, director of Government and Consumer Affairs at the Scotch Whisky Association, called the development at Annandale a “very welcome trend” of new distilleries being created and silent distilleries being brought back into production, adding:

"Significant recent investment across the Scotch Whisky industry is being supported by growing demand worldwide and is good news for the wider Scottish economy."

The announcement follows the publication of new “record” export statistics by the Scotch whisky industry.

Moray MP Angus Robertson said it showed the whisky industry is going from “strength to strength” around the globe.

He continued: “Everybody involved in whisky production, marketing and sales should be tremendously proud of their efforts.

“It is ironic that, while the rest of the world is boosting the industry, at home the UK Labour government is undermining the domestic sector by hiking tax rates on Scotland’s premium product.”