Scrap whisky tax hike, Chancellor urged

RUTH Davidson has made a direct plea to Philip Hammond to freeze whisky duty when he delivers his Budget later this month.

The Chancellor is looking to increase some taxes to help fund a flagship £20billion pledge to boost the NHS on its 70th birthday.

It puts the whisky industry in the firing line, amid fears that duties on alcohol will rise.

Miss Davidson met the Chancellor and the Chief Secretary to the Treasury to demand that they do not ramp up taxes on whisky and instead show support for the industry as it faces uncertainties relating to Brexit.

But Tory sources indicate that it could be an uphill battle trying to convince him, and plan to ‘lobby hard’ in the coming weeks.

Scotch whisky generates almost £5billion a year for the UK economy, supports more than 40,000 jobs across Britain and directly contributes more than £3.2billion to the Scottish economy.

In 2015, a 2 per cent cut to spirits duty led to a £123million increase to the sector’s contribution to the Treasury, totalling £3.15billion.

Douglas Ross, Tory MP for Moray, said: ‘A freeze in duty is what the industry is asking for and I am backing that call.

‘This Conservative Government understands the importance of the industry – and that is why I believe it is so important that we support Scotch whisky in this Budget.’

Lizz Truss, Chief Secretary to the Treasury, refused to rule out a duty rise, but vowed to listen to the industry’s concerns.

She said: ‘I am going across Scotland listening to businesses about what they want to see and how the UK Government in its Budget will make sure it delivers for Scotland. That’s really important to me.’