THE UK Government has been accused of putting “soundbites before Scotch” in a row over the Treasury’s whisky tax.
Graham Leadbitter, the SNP MP for Moray West, Nairn and Strathspey, hit out after a minister refused to answer a “basic question” about the impact of tax on the industry.
Leadbitter’s constituency is home to around one-third of Scotland’s whisky distilleries.
In an exchange in the House of Commons, Leadbitter asked the UK Government if the whisky duty would be brought down at the Budget in November.
In 2023, it was hiked by 10.1% by the then-Tory government, and then by a further 3.65% by Labour in 2024, which came into effect in February.
“Hiking excise duty by 14% over the past two years was expected to raise £600 million for the Treasury in duty on spirits, but it has actually cost £600m,” Leadbitter said in the Commons.
“With 70% of spirits produced in Scotland, this is nothing short of a tax on Scotland.
“The Chancellor has 77 days to back Scotch, support Scotland and sustain growth in this iconic and entrepreneurial sector. Will she therefore commit to reversing the Government’s attacks on a great Scottish success story by bringing down whisky duty in the Budget?”
In response, Torsten Bell (below), parliamentary secretary to the Treasury, said: “Over 90% of Scotch is exported and is therefore not affected by the measures that the honorable member has just mentioned, but it will be affected by being the biggest beneficiary of the trade deal with India, which is set to reduce tariffs from 150% to 75% initially, and then to 40% over time.
“This is what a government getting on with backing the Scotch industry looks like.”
Following the exchange, Leadbitter told The National: “The whisky industry is a great Scottish success story that deserves our support but is unfortunately being let down by a UK Government more interested in putting soundbites before Scotch.
“If ministers would ditch the script and instead listen to the concerns raised by the industry, they’d realise their punitive tax regime has been responsible for the loss of over 1000 direct whisky jobs, as well as a sharp drop in public finances.”
He added that Keir Starmer previously promised to back the whisky industry but has instead allowed the Government to “trample over the success of our national drink and bottle up investment opportunities”.
“And sadly their deflections hint to an even trickier future for the industry,” he added.
“If the government has any intention of supporting whisky, they should say so and end any speculation they’ll raise taxes again.
“With over 70% of UK spirits being produced in Scotland, they have effectively imposed a tax on Scottish industry that they see more as a cash cow than an integral part of our culture and our economy.”
It comes after First Minister John Swinney travelled to the US for a meeting with Donald Trump in the Oval Office, where he argued for the removal of a 10% tariff on whisky.
Swinney said the pair had a “constructive discussion”, but the negotiations are now in the hands of the UK Government.
