Scotland’s First Minister John Swinney has called on the UK Government to support the Scotch Whisky sector and its Scottish supply chain by cutting spirits duty in next month’s Autumn Budget.
The call came after the First Minister met with the Scotch Whisky Association’s Council of member companies.
In its own submission to the Treasury earlier this week, the SWA called on Chancellor John Healey to cut excise duty on spirits, 70% of which are produced north of the border, and stressed that such a cut would have a positive knock-on effect for hospitality businesses, which rely on spirits for over a third of their total profits.
The SWA called the current alcohol duty system, which taxes Scotch Whisky and other spirits up to four times more than beer, cider and wine, ‘a broken model for Scotland’, highlighting that the 17% increase to excise duty in the last three years had actually led to a fall in Treasury revenue.
First Minister John Swinney seemed convinced by these SWA arguments: “Scotch Whisky is a cornerstone of Scotland’s culture, heritage, economy and global identity.
“This Government stands shoulder to shoulder with this industry, supporting thousands of jobs and standing proudly as a symbol of Scotland’s reputation around the world.
“Today I’ve heard directly from major producers to smaller distillers,” said Swinney. “It is clear that duty rises have placed undue pressure on the industry and I echo calls for the UK Government to address this unfairness.”
Chief executive of the SWA, Mark Kent, said: “We are grateful for the support of the First Minister and his team in backing an iconic Scottish industry like Scotch Whisky, and its partners in Scotland from farmers to hospitality venues and tourism.
“We welcome their recognition that a cut to excise duty in the Autumn Budget would have a tangible impact on Scotch Whisky producers large and small by allowing them breathing room to look to the future, invest in innovation and expansion, and support jobs – something which can only help boost growth across Scotland and the wider UK.”
