“Labour’s word means nothing” an SNP MP has said after the party’s first UK Budget dealt a major blow to the Scotch Whisky industry despite Starmer’s promises to back the sector ‘to the hilt’.
Despite making the promise in 2023, following a visit to InchDairnie Whisky Distillery, that a Labour government would support Scotch Whisky, the party’s budget increased duty on Scotch Whisky products.
Moray West, Nairn and Strathspey MP, Graham Leadbitter, who is also a Vice-Chair of the APPG on Scotch Whisky, said the move “defies common sense, independent analysis, and Labour’s own promises” before warning it would “come back to bite them.”
Independent analysis has found that previous tax hikes hurt the industry and Treasury coffers, with research from the Scotch Whisky Association showing that after the UK government increased Whisky excise duty by 10.1% in 2023, revenue received by the Treasury fell by £298 million per year.
Additionally, from 1st January 2025, Scotch Whisky producers will pay 3 different taxes per bottle: with increased duty, 20% VAT, and Extended Producer Responsibility (estimated at around £0.15 per bottle, based on DEFRA’s published fees of up to £215/tonne for glass).
In 2022, Scotch Whisky generated £7.1bn for the UK economy supporting more than 40,000 jobs in Scotland.
Commenting, Graham Leadbitter MP said:
“What Keir Starmer and Rachel Reeves have signalled is that Labour’s word means nothing.
“In opposition they were happy to appear for photo-ops and make grand promises to support the sector, but now they’re in government they haven’t just turned their backs on Scotch Whisky – they’ve slammed the door on the industry.
“This is a move that defies common sense, independent analysis, and Labour’s own promises – and it’ll come back to bite them.
“Analysis has proved that when Whisky duty is raised, Treasury receipts fall and the industry suffers.
“Successive Westminster governments have had the Scotch Whisky industry over a barrel, and now it appears it’s Labour’s turn to hold back one of Scotland’s key industries and world-class exports.
“I represent some of the finest Scotch Whisky brands in the world, whose success has come from, in some cases, literal centuries of crafting and perfecting incredible products.
“They’re now being held back by a Westminster tax regime that simply sees the industry as a cash cow.
“The SNP recognise the importance of Scotch Whisky and its role in our economy, history, and our presence on the world stage – we’ll stand against these damaging proposals.”
