Whisky bosses raise a glass to Chancellor’s Budget freeze on spirits duty

Tax burden on Scotch in the UK remains at 74 per cent – while trade body calls for reform of taxation on alcohol

The decision by Chancellor Philip Hammond to continue the freeze on spirits duty in the Budget has been welcomed by The Scotch Whisky Association (SWA).

It was announced that the duty rate on spirits will remain at £28.74 per litre of pure alcohol.

The industry had been calling for a duty freeze in a bid to signal the UK government’s determination to champion Scotland’s national drink and back Scotch’s continuing export success story.

Currently, of the £14.15 average price of a bottle of Scotch, £10.41 is collected in taxation through excise duty and VAT. The tax burden remains at 74 per cent, or £3 in every £4 spent on the average priced bottle of Scotch in the UK being tax.

Politicians from across the UK and Scottish Parliaments had backed the industry’s campaign to continue the duty freeze, which has boosted industry investment and increased government revenue.

Karen Betts, SWA chief executive, said: “The Chancellor has made the right decision for the public finances, the industry and for consumers.

“The continuation of the duty freeze is a very welcome show of support for the Scotch whisky industry, which plays an important role in the UK and Scottish economies and which is one of the UK’S most successful exporters.

“Time after time, the industry has shown that a stable rate of tax both boosts government revenue to help support vital public services and creates an environment which encourages investment in future growth.

“We have welcomed the support shown to the industry by the politicians from across the UK and the political spectrum who have backed our campaign and have stood up for the industry and the communities it supports.

“However, the Scotch Super Tax remains, with £3 in every £4 spent on the average priced bottle of Scotch in the UK still collected in taxation, and a significant disparity between what consumers pay in tax on Scotch and other alcoholic products.

“HM Treasury should move quickly to begin detailed discussions with the industry about longterm reform of the UK’S alcohol tax regime.”