SNP MP Graham Leadbitter has called for urgent action to support Scotland’s whisky industry, after new figures revealed 1,000 direct jobs have been lost since the UK Chancellor raised taxes on spirits.
The Moray West, Nairn and Strathspey MP, who represents around a third of Scotland’s distilleries, warned the sector is “under a perfect storm” of domestic tax hikes and renewed US tariffs.
Speaking in the House of Commons today, Mr Leadbitter urged the Chancellor to reverse the 14% rise in excise duty introduced last year, with just 77 days left until the UK Government’s next budget.
The SNP MP is vice-chair of the All-Party Parliamentary Group on Whisky and said the Treasury’s own figures reveal the policy has backfired.
Despite the tax increase, duty receipts are down £600 million, 14% less than forecast by the Office for Budget Responsibility in 2023.
Mr Leadbitter highlighted warnings made before the current Labour government took office.
In 2023, the former Conservative Chancellor raised whisky duty by 10.1%, resulting in an annual loss of nearly £300 million in tax revenues.
Now, the industry is also facing the reimposition of US tariffs introduced under President Donald Trump, costing an estimated £4 million a week.
“Scotch whisky is an iconic Scottish success story,” said Leadbitter.
“But the UK Government has it over a barrel with a tax regime that’s doing damage not just to the industry, but to the public purse.
“Since the UK Government reneged on its promise to back the industry ‘to the hilt’, we’ve seen 1,000 direct jobs lost and an even sharper drop in revenue.
“This was avoidable.
“The Chancellor was warned that increasing duty would harm the industry and reduce Treasury income, but she pressed on anyway.”
Mr Leadbitter added that Scotland’s First Minister had shown leadership by travelling to the US to discuss trade issues directly.
“While Labour deliberates over whether to raise taxes even more, Scotland’s First Minister is already working to secure a better deal for our national drink.
“The UK Government should follow suit and use its powers to reverse the tax hikes and freeze spirits duty.”
