Labour Government demanded to back Scotch Whisky ahead of the budget.
In a call to the Chancellor, SNP MP for Moray West, Nairn and Strathspey, Graham Leadbitter, and Aberdeenshire North and Moray East MP, Seamus Logan, have demanded the Labour Party live up to their promise to back Scotch Whisky.
It comes after Sir Keir Starmer said he would back Scottish producers “to the hilt” following a visit to InchDairnie whisky distillery in November last year.
Analysis conducted by the Scotch Whisky Association found that after the UK government increased Whisky excise duty by 10.1% last year, 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: £8.86 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:
“The Labour Government has our whisky industry over a barrel with a tax regime that is costing the UK £300m in lost revenues – Rachel Reeves is holding back one of Scotland’s key industries and now we know it doesn’t work for Treasury coffers either.
“Just like our energy sector, Westminster simply sees our industries as a cash cow to bleed every penny out of – we should be backing Scottish businesses to thrive because that’s how to deliver growth and support jobs.
“We represent some of the world’s finest whisky brands, but the potential of these world-class products is being throttled by Westminster and it’s high time the Labour Government delivered on their promise to back Scottish whisky “to the hilt”.
“Quite frankly, it beggars belief that the UK Government would slap an eye-watering 75% tax on Scotch Whisky when it supports more than 40,000 Scottish jobs and delivered more than £7.1bn to the Treasury.
“At the budget, the SNP will put Scotland’s interests first and demand a fair deal for Scotch Whisky – we urge Scottish Labour MPs to join us in these calls and do right by one of Scotland’s finest industries.”