Two Moray politicians are demanding an urgent reduction in Scotch whisky duty ahead of the UK Budget, warning that continued tax increases are threatening jobs, investment and the future of one of Scotland’s most important industries.
Moray MSP Laura Mitchell and Moray West, Nairn and Strathspey MP Graham Leadbitter have written directly to Chancellor John Healey, urging him to reverse recent duty increases when he delivers his first Budget later this month.
The SNP representatives, whose constituencies are home to around a third of Scotland’s whisky distilleries, argue that the industry is being placed under growing financial pressure at a time when producers are already facing difficult trading conditions.
They claim whisky duty has increased by 17% over the past three years, while Treasury receipts have fallen £1.1 billion below forecasts.
The pair have also criticised the UK Government’s decision to grant English whisky geographical protection, arguing that the rules risk undermining the distinctive status of Scotch.
Their intervention comes as concerns grow about employment and investment across Scotland’s whisky industry, with Moray particularly exposed because of the importance of distilling to its local economy.
In their letter to the Chancellor, Mitchell and Leadbitter set out their demands in full.
Dear Chancellor,
As you know, your crippling tax on Scotch Whisky is costing jobs and the Treasury billions in lost revenues.
The Labour Party promised distilleries you would back them “to the hilt”, but instead you have diluted the status of our premier product and hiked duty by 17%.
Whisky is Scotland’s premier product with our world-famous national drink in high demand all over the world. The industry enhances our country’s international reputation and delivers economic growth.
Nowhere is this the case more than in our constituencies in Moray, home to one third of all Scotland’s distilleries. The industry supports over 5,000 jobs in the area with more than one in nine people employed in whisky production.
You must call off this sustained attack on our whisky industry with 1000 jobs lost last year alone and one in four distilleries planning further cuts, costing the Treasury over £1.1bn in lost revenues.
First Minister John Swinney took the case for our industry right to the heart of the White House and we secured an end to crippling tariffs. It’s high time that your government makes the same commitment to our trade and you cease your attack on the industry when you stand at the despatch box later this month.
Yours sincerely,
Laura Mitchell, MSP for Moray
Graham Leadbitter, MP for Moray West, Nairn and Strathspey
The letter places renewed pressure on the Chancellor to consider the impact of alcohol duty on an industry that supports employment across rural Scotland, particularly in communities where distilling is a major economic contributor.
The UK Government has previously defended its alcohol duty approach as a balance between raising revenue, supporting public services and recognising differences between alcoholic products.
However, the SNP argues that further increases risk adding to the difficulties facing producers and the communities that depend upon them.
For Moray, where whisky production is woven into the local economy and international identity, the coming Budget will be closely watched by distillery workers, businesses and the wider supply chain.
Mitchell and Leadbitter have made their position clear, with the pair insisting that protecting Scotland’s whisky industry should be a priority when the Chancellor sets out his tax decisions later this month.
