Scottish Labour MPs are being challenged to vote against another increase in Scotch whisky duty as the House of Commons prepares to consider the UK Government’s Budget resolutions today, Tuesday 3 November.
The SNP has called on Labour representatives in Scotland to oppose the latest tax rise, warning that further increases could damage one of the country’s most important industries and threaten employment in distilling communities.
The UK Budget, delivered on 28 October, confirmed that alcohol duty would increase in line with inflation from 1 February 2027.
The Scotch Whisky Association has criticised the decision, warning that it represents the fourth consecutive annual increase in spirits duty and will bring the total tax burden on an average bottle of Scotch whisky to 74 per cent.
The association also reports that spirits duty has increased by 24 per cent since 2023, adding to pressure on producers, supply chains and businesses dependent on the industry.
Graham Leadbitter, MP for Moray West, Nairn and Strathspey, is particularly concerned about the consequences for Speyside, where distilling is a major source of employment and economic activity.
His constituency is home to approximately one third of Scotland’s whisky distilleries, making decisions on taxation particularly significant for local businesses and their employees.
The SNP has also criticised Prime Minister Andy Burnham, arguing that the duty increase conflicts with his commitment to deliver economic growth in every postcode.
Graham Leadbitter MP said:
“Today SNP MPs will stand up for Scotland, stand up for our national product and stand up for the thousands of jobs which depend on the success of Scotch whisky.
“We will vote against Andy Burnham’s decision to hammer the whisky industry with another massive tax hike.
“The question now for Labour MPs in Scotland is whether they have the backbone to join with the SNP, to stand up for Scotland and vote against the damaging decisions of their own UK Labour Government.
“Andy Burnham promised to deliver growth in every postcode, the disastrous decision to inflict higher taxes on Scotch whisky show that this promise does not apply to Strathspey.
“The Labour Party promised to back Scotland’s whisky sector “to the hilt” before the election, but for the 3rd straight year the UK government has decided to hammer this industry, our greatest export deserves better.
“The US dropped its whisky tariffs after John Swinney stepped in and now the UK Labour Government must rethink this economically devastating decision and cut whisky tax.
“Our key industries are under attack from crippling Westminster taxes.
“If these sectors were based south of the border, they would never be subjected to the same treatment, through a fresh start with independence we can take full control over our economy, back Scottish business and build a wealthier Scotland.”
The Scotch whisky industry contributes billions of pounds to the economy and supports employment across production, agriculture, transport, tourism and hospitality.
The UK Government says the latest duty increase maintains the value of alcohol taxation in real terms, rather than imposing an additional increase above inflation.
However, industry representatives argue that repeated rises are placing growing pressure on businesses at a time when investment and employment are already under strain.
Today’s parliamentary proceedings will give MPs an opportunity to register their positions on the Budget, with the debate placing renewed attention on the economic importance of Scotch whisky to Scotland.
