The UK Government has come under fierce criticism over plans to increase duty on Scotch Whisky by 4.55% next February, with a Highland and Speyside MP accusing Labour of either economic incompetence or malice.
Graham Leadbitter, MP for Moray West, Nairn and Strathspey, has condemned the announcement, warning that successive tax increases are placing further pressure on one of Scotland’s most important industries.
The latest increase means duty on Scotch Whisky will have risen by 24% over four years, a greater increase than the industry experienced during the fifteen years between 1995 and 2010.
Leadbitter represents a constituency containing nearly a third of Scotland’s whisky distilleries, making the consequences particularly significant for communities where the industry supports employment, tourism and local businesses.
The MP has questioned the economic justification for further increases, pointing to evidence that previous rises in spirits duty have coincided with falling Treasury revenues.
He also accused Labour of abandoning its commitment before the 2024 General Election to support the Scotch Whisky industry.
Leadbitter said:
“This is an industry that goes back centuries, employs tens of thousands of people, brings in billions to our economy, and is of such cultural significance to Scotland.
“Clearly though none of that is important to the London-based Labour government who have been intent from day one of their tenure to put this industry over a barrel.
“There’s not a measure of sanity in this move, which has been proven to repeatedly harm not just the industry but also the Treasury’s takings.
“Any sensible Chancellor would recognise the economic reality of this and work with the industry to support its future and public finances, so why is it that Scotch Whisky in particular is being treated this way?
“People in Scotland will rightly conclude that this move has been driven by either economic incompetence or malice.
“But whether it’s discrimination against this uniquely Scottish industry or just plain ignorance that has driven yet another Chancellor to commit this calamitous mistake it actually doesn’t really matter, because either way it’s unacceptable and just goes to show how little we mean to Westminster.
“The only way that we can end the Westminster imposed economic sabotage of our beloved national drink and its producers is with the full powers of independence, where we can treat our cultural and economic institutions with the respect they deserve.”
The increase comes at a time when Scotland’s whisky producers are already facing pressures associated with rising operating costs and uncertainty across international markets.
For Speyside and the Highlands, where distilleries support extensive supply chains and provide important employment in rural communities, the effects of further taxation extend well beyond the drinks industry.
The latest announcement is likely to intensify calls for the UK Government to reconsider its approach to spirits duty and the wider economic consequences for Scotland’s whisky producing regions.
