The SNP has called on the Labour Government to reverse its tax hike on Scotch whisky, warning that the Westminster policy is damaging one of Scotland’s most successful and culturally significant industries.
It comes ahead of the UK Budget, with the party demanding Chancellor Rachel Reeves undo what it described as a “hammer blow” to Scotland’s national drink.
In last year’s budget, Reeves increased whisky duty, breaking Labour’s election pledge to support Scottish producers.
The decision was condemned by the Scotch Whisky Association, which said the rise directly contradicted the party’s commitment to back the industry “to the hilt.”
The move followed a decade of frustration within the sector.
When the previous Conservative Government raised duty by 10.1 percent in 2023, Treasury revenues from whisky fell by nearly £300 million, according to industry analysis.
Despite that, Labour’s new administration repeated the mistake.
SNP representatives say the industry has already been hit hard by economic pressures, US tariffs, and falling confidence in Westminster’s understanding of Scotland’s key exports.
Last week, Scotland’s Secretary of State, Douglas Alexander, attacked First Minister John Swinney for his focus on international trade negotiations.
The SNP hit back, pointing out that Swinney’s efforts have included meetings with the President of the United States, senior members of Congress, and representatives from both the Scotch whisky and Kentucky bourbon industries, all aimed at lifting tariffs that cost Scotland’s economy an estimated £4 million a week.
SNP MP for Moray West, Nairn and Strathspey, Graham Leadbitter, whose constituency is home to around a third of Scotland’s whisky distilleries said the Labour Government must now act to protect the industry and repair the damage caused by last year’s decision.
“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 at every opportunity with the US President,” Mr Leadbitter said.
“Now it’s time for the Labour Government to reverse the devastating harm they have inflicted on our world-class product.”
He said the Treasury’s tax policy was “short-sighted and self-defeating,” accusing Westminster of treating Scottish industry as a cash cow.
“The Labour Government has our whisky industry over a barrel with a punitive tax regime that is costing the UK £300 million in lost revenues,” he said.
“Rachel Reeves is holding back one of Scotland’s key industries, and we know it doesn’t work for Treasury coffers either.”
Mr Leadbitter said that as Vice Chair of the All-Party Parliamentary Group on Scotch Whisky, he would continue to push for fairer treatment.
“I represent some of the world’s finest whisky brands, but the potential of their products is being throttled by Westminster,” he added.
“It’s high time the Labour Government delivered on their promise to back Scottish whisky to the hilt.”
He said the upcoming Budget was a chance for the Government to put things right, and for Scotland’s national drink to receive the respect and support it deserves.
