Duty freeze puts whisky industry in good spirits

Scotch-makers say support helps to ensure they stay competitive

The Scotch Whisky Association (SWA) welcomed the chancellor’s decision to freeze excise duty on beer and spirits, saying it helped to support the competitiveness of Scotland’s national drink.

The industry body hailed the move as a boost for a major UK manufacturing industry and its supply chain, and for the 40,000 jobs it supports across the UK.

But the trade body also said Philip Hammond had missed a golden opportunity to deliver an even bigger boost for consumers, the industry and public finances by not going further and cutting duty.

And it claimed the industry’s competitiveness could have been strengthened by reducing the tax, as whisky-makers seek to turn the challenges of Brexit into opportunities.

As a result of yesterday’s freeze, tax – VAT and excise duty – on an average priced bottle of Scotch whisky in the UK remains at 80%, meaning more than £10 goes straight to the Treasury. SWA chief executive Karen Betts said: “We welcome the freeze in excise duty on spirits, which helps support the competitiveness of Scotch – a major UK export – in uncertain times.

“My thanks go to all MPs and MSPs who have supported Scotch and helped convince the chancellor that a second duty rise in 2017 would have hurt the industry and consumers.

“But tax on Scotch is still very high – £4 in every £5 spent on Scotch goes to the Treasury – and we believe this is a missed opportunity.

“We believe a cut would have delivered more revenues to the government as well as underscoring government support for an important UK manufacturing industry, which supports 40,000 jobs across the UK.”

Lindsay Gardiner, regional head for professional services firm PwC in Scotland, said: “One sector that will be pleased there has been no change . . . is the whisky trade.

“There are many there who feel they have taken their hit for the month, with the minimum pricing announcement last week.”

GLASS ACT: The Scotch Whisky Association points out that tax on the drink is still very high, with £4 out of every £5 spent on Scotch going to the Treasury