Whisky industry raises a glass as duty is frozen

SCOTLAND’S whisky industry has received a major boost after Rishi Sunak scrapped plans to increase duty.

The Chancellor yesterday announced he was freezing duty on spirits along with that on beer, cider and wine with a review of the taxes to follow.

In a Budget widely welcomed by the whisky industry, Mr Sunak also pledged to lobby the United States Government over a 25 per cent tariff applied to Single Malts following a transatlantic trade dispute.

The decision to freeze the duty rate on spirits means it will remain at £28.74 per litre of pure alcohol, which is around £10.49 on the average bottle of Scotch whisky when VAT is included.

Speaking at Westminster, Mr Sunak said: ‘Scotch whisky is a crucial industry and our largest food and drink export.

‘The planned increase in spirits duty will be cancelled.’

This comes amid growing concerns within the whisky industry, with major brands and organisations lobbying the Government in recent months over spirit duty and punitive taxes applied by the US Government.

Officials in the United States applied a 25 per cent tariff on exports to the country of single malt Scotch whisky and liqueurs. This was put in place in October following a trade dispute between American and European aircraft manufacturers.

Mr Sunak said he was aware of the effect ‘recent US tariffs are having’. He added: ‘We will continue to lobby the US Government to remove these harmful tariffs.’

He has also pledged £10million in research and development money to help distilleries across the UK ‘go green’ by implementing decarbonisation projects.

Scotch Whisky Association chief executive Karen Betts said: ‘We welcome the fact that excise duty on spirits has been frozen for nearly three years and the Chancellor’s announcement today that excise duty will not rise further.

‘However, our industry needs continued support through the upcoming review of UK alcohol taxation and while our exports remain subject to US tariffs.’

Diageo Great Britain, Ireland and France managing director Dayalan Nayager said: ‘We welcome the Chancellor’s duty freeze which will provide much-needed stability in these difficult times for the industry.’