An SNP MP, representing a key whisky producing area, has said the Spring Statement represents the ‘last chance saloon’ for the Labour Government to keep its promises to the Scottish whisky industry as it faces growing tariff threats.
Graham Leadbitter MP, whose Moray West, Nairn and Strathspey constituency is home to Speyside Malts and one-third of Scotland’s whisky distilleries, has called on the Labour Chancellor to reverse the damaging tax raid she inflicted on the industry in her disastrous budget last October. That hike came on top of a previous Tory tax raid on the industry.
Research from the Scotch Whisky Association (SWA) reported that after the previous Tory government raised taxes on whisky products in 2023, tax revenue raised by the industry fell by £300 million.
Spirits giant Diageo also recently warned that another round of tariffs could cost them £161 million in profits in their Mexico and Canadian brands alone.
When previous tariffs came into effect in 2019, the Scotch Whisky Association reported a “stark” and immediate 25% drop in exports to the US for the final quarter of 2019.
Commenting, Graham Leadbitter MP said:
“The Spring Statement represents the last chance saloon for the Labour Chancellor to end Westminster’s damaging tax raid on Scottish Whisky and finally give the industry some badly needed relief as it faces the threat of tariffs.
“Successive Westminster tax raids on Scottish whisky don’t just have the industry over a barrel, it is actually costing the public purse hundreds of millions in lost revenue.
“When the last Tory government hiked Whisky Duty, tax revenue raised by the industry fell by £300 million.
“The only sensible option, both for supporting Scotch Whisky and revenues is to now cut Whisky Duty – instead of this Labour Chancellor breaking another promise.
“Providing that badly needed relief is all the more important with the prospect and possibility of Trump tariffs which may limit sales of Whisky in one of its most important markets.
“So far Westminster has shown itself to be no friend of the Whisky industry, it needs to finally take heed of the multiple warnings over the last few months, as well as the analysis from experts like the Scotch Whisky Association.”
