Call for cut to excise duty on spirits to boost scotch whisky industry

Led by SNP MP Brendan O’Hara, Chair of the Scotch Whisky APPG, the debate will recognise the important contribution that the iconic Scottish industry makes to the UK economy – adding an estimated £5billion in value and supporting over 40,000 jobs.

Scotch whisky is the single largest contributor within the goods sector to the UK’s net export.

In 2014 Scotch whisky exports reached £3.95billion, accounting for 21 per cent of the food and drink exports of the whole UK.

Last year 99million cases were exported worldwide, earning £135 per second to the UK balance of trade. Without Scotch whisky the UK’s trade gap would have been 11 per cent wider.

An average-priced bottle of Scotch whisky is currently subject to 76 per cent tax, which the SNP and the Scotch Whisky Association say is too high and counterproductive to supporting growth in both the industry and Treasury receipts.

Between April 2015 and January 2016, following a 2 per cent cut in last year’s budget, duty receipts increased by £102million compared to the same period in previous years.

Stewart Hosie MP, the SNP Deputy Leader and Economy spokesperson, said: “Scotch whisky is an iconic and important part of Scotland’s food and drink industry and makes a huge contribution to the UK economy each and every year.

“The SNP Scottish Government has taken steps to support Scotch whisky, however it makes absolutely no sense for the UK government to hold back the growth of this vital industry and the revenues, jobs and tax receipts that the whole country benefits from.

“The Chancellor should now listen to the SNP and the industry itself, and deliver this cut in excise duty at the Budget so that we can support the industry by building a home market that encourages growth and stimulates long-term investment.”

David Frost, Chief Executive of the Scotch Whisky Association, said: “The Government’s own figures tell a simple story: when tax is too high, if you cut it, revenues go up not down. Along with the British public, we believe that the current tax of 76 per cent on a bottle of Scotch is too high. An ordinary drinker will hand over almost ten pounds in tax on each bottle they buy. We would like to see a 2% cut again this year. It really is common sense to stand up for Scotch.”