The SNP has called on the Labour Government to reverse its controversial tax hike on Scotch whisky, describing it as a short-sighted move that is damaging jobs, investment, and one of Scotland’s most celebrated industries.
Ahead of the UK Budget, SNP MPs are warning that Labour’s decision to maintain and extend higher whisky duties is not only undermining Scotland’s economy but has already cost the Treasury hundreds of millions in lost revenue.
Chancellor Rachel Reeves’ decision to raise whisky duty in her first budget last year was branded a “hammer blow” by the Scotch Whisky Association, who accused the Labour Government of breaking its promise to protect Scotland’s national drink.
The move came despite Sir Keir Starmer’s pre-election pledge to back Scottish producers “to the hilt” following his high-profile visit to InchDairnie Distillery in Fife.
The Labour leader had promised to support the industry as a cornerstone of Scotland’s economic and cultural identity.
Now, with a new Budget on the horizon, the SNP is demanding the Chancellor undo what it calls “a catastrophic mistake.”
SNP MP for Moray West, Nairn and Strathspey, Graham Leadbitter, whose constituency is home to a third of Scotland’s whisky distilleries said the policy shows how little Westminster understands Scotland’s economic priorities.
“John Swinney has led from the front to protect Scotch Whisky from US tariffs, taking the case to the Oval Office and raising the matter directly with the President,” he said.
“Now it’s time for the Labour Government to reverse the devastating harm they’ve inflicted on our world-class product.”
“The Labour Government has our whisky industry over a barrel with a punitive tax regime that’s costing the UK £300 million in lost revenues.
“Rachel Reeves is holding back one of Scotland’s key industries, and we know it doesn’t even work for Treasury coffers.
“This is an economic own goal.”
He said the situation mirrors Westminster’s treatment of Scotland’s energy sector, accusing the UK Government of “treating vital national industries as cash cows to be milked dry.”
“Our whisky producers are competing globally, flying the flag for Scotland in over 180 export markets, yet they are punished at home by a government that sees their success as a source of easy income,” he said.
“It’s time for that to change.”
The Scotch Whisky Association’s own analysis found that after the Conservatives raised whisky duty by 10.1% in 2023, revenues to the Treasury fell by almost £300 million as sales and exports took a hit.
Despite this evidence, Rachel Reeves introduced further increases in 2024, breaking yet another manifesto promise.
Leadbitter said the SNP would use the Budget to push for fairer treatment of Scotch whisky and demand a reversal of the duty hikes.
“At the Budget, our world-class product must be given the support it needs and deserves,” he said.
“Scotch whisky supports more than 40,000 jobs, many in rural areas, and generates billions in exports for the UK economy.
The industry doesn’t need rhetoric, it needs respect, fairness, and a government willing to listen.”
He added:
“From Moray to Islay, whisky is part of who we are.
“It’s Scotland’s global ambassador, yet Westminster’s tax raids are choking its potential.
“We will continue to stand up for our distillers and demand a government that values Scotland’s contribution, not exploits it.”
