The UK Government is being urged to cut whisky duty following proposed job losses at Diageo, as fresh concerns emerge over the pressures facing Scotland’s Scotch whisky industry.
Moray MSP Laura Mitchell has called for a reduction in duty after Diageo announced plans to cut 38 roles in Scotland as part of a wider $1 billion savings programme.
The intervention follows concerns over proposed redundancies affecting workers in Speyside, where the whisky industry remains a major employer and an important part of the wider Moray economy.
The SNP argues that increases in whisky duty introduced at Westminster have contributed to the pressures facing distillers and claims subsequent falls in sales have resulted in tax revenues being £1.1 billion lower.
The latest call comes during a period of significant change for the industry, with US tariffs on Scotch whisky recently lifted following lobbying by First Minister John Swinney.
Mitchell, whose Moray constituency contains around half of Scotland’s distilleries, argues that the combination of a new Prime Minister, the removal of US tariffs and concerns over jobs makes this the right time for Westminster to reconsider domestic taxation of the industry.
Laura Mitchell said:
“The tax hikes imposed on Scotland’s greatest industry by Labour and Tory MPs at Westminster has driven down sales, brought down tax revenue, and placed enormous pressures on distilleries across Scotland.
“This policy is a total failure, and is harming both taxpayers, and the Scottish Whisky industry and the announcement of this latest job cut makes that clear.
“We know the love for Scotland’s national drink across the world and it was only through the actions of John Swinney raising the issue with Trump directly that we managed to repeal the US’ Scotch Whisky tariffs, which were harming both buyers and sellers.
“The new Prime Minister should follow in the footsteps of the SNP Scottish Government by championing the industry at home and abroad and scrap its tax hikes which have slowed the sector’s success.
“Unlike the UK government, the SNP will always stand up for Scotland’s Whisky and spirits trade and it’s high time the Labour Government backed this successful industry and ended their supertax on Scotland’s premier drink.”
The call places whisky taxation back at the centre of the debate over how government policy can support an industry facing changing international markets, pressure on employment and the continuing challenge of maintaining investment across Scotland’s distilling communities.
For Moray and Speyside in particular, that debate carries considerable local significance, with distilling supporting skilled jobs alongside an extensive network of suppliers and businesses whose fortunes remain closely connected to the health of the Scotch whisky industry.
