Slàinte! Whisky chiefs raise a glass as extra duties are scrapped
SCOTLAND’S whisky industry has been handed a boost after a planned rise in alcohol duties was cancelled.
Tax on wine, beer and spirits was set to soar in line with inflation next year, which would have added £1.35 to the average price of a bottle of Scotch whisky.
But the Chancellor yesterday announced the rate would instead be frozen for one year from the beginning of February.
It is estimated the move will save the drinks industry £80million alone in February and March next year, and then £545million in 2023/24.
Scotch Whisky Association chief executive Mark Kent said: ‘The Prime Minister Liz Truss said that it was important to back the Scotch whisky
‘Old duty system was an outdated mess’
industry to boost growth, and today the Government has delivered.
‘The Chancellor Kwasi Kwarteng has again frozen duty on Scotch whisky and other spirits, meaning the planned double-digit inflationary increase will now not go ahead.
‘This will save consumers £1.35 on the average-priced bottle of Scotch whisky and help the industry as it deals with the dual challenge of rising energy costs and supply chain pressures.
‘On behalf of the SWA’s members, I want to thank the Government for listening to the concerns of the industry and taking action to support Scotch.’
Mr Kent added: ‘The duty freeze will not only support our sector, but the hospitality industry and the wider economy.
‘Further action will be needed to bring down the 70 per cent tax burden on
Scotch whisky in the UK, which remains the highest in the G7 and one of the highest in the world.
‘We look forward to working with the new HM Treasury team to ensure Scotch whisky can deliver investment, employment and growth in Scotland and across our supply chain.’
Announcing the move yesterday, Mr Kwarteng said: ‘At this difficult time, we are not going to let alcohol duty rates rise in line with RPI [Retail Prices Index].
‘So I can announce that the planned increases in the duty rates for beer, for cider, for wine and for spirits will all be cancelled.’
Jean-Etienne Gourgues, chief executive and chairman of Chivas Brothers, said last night: ‘We very much welcome the freeze in duty announced by the Chancellor today.
‘At a time of rising business and consumer costs, a stable duty regime will help producers, on-trade operators and households across the country to weather a difficult period.
‘These changes will help to create the right environment for producers to invest long-term, in turn powering exports globally.
‘We are proud to be doing just that, investing £88million in the expansion of our Scotch whisky distilleries, and with an ambition to achieve net-zero distillation in the UK by 2026.’
Nuno Teles, managing director at Diageo Great Britain, said: ‘Today we raise a Guinness to the Chancellor and PM, as a freeze in alcohol duty is great news for pubs, restaurants, and tourism.
‘The old duty system was an outdated mess, now it will recognise the pleasure and jobs that spirits and cocktails generate in Britain.
‘These reforms will help UK distillers invest and go for growth.’