Concern over impact of Labour’s budget on the Scotch whisky industry

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By Bill Heaney

Holyrood MSPs are “deeply concerned about the impact of Labour’s budget on the whisky industry, which is a key sector of Scotland’s economy”.

Gordon MacDonald (Edinburgh Pentlands) (SNP) is co-convener of the cross-party group on Scotch whisky.

He told the Scottish Parliament: “I am deeply concerned about the impact of Labour’s budget on the whisky industry, which is a key sector of Scotland’s economy.

“The Scotch Whisky Association said: ‘This duty increase on Scotch Whisky is a hammer blow, runs counter to the Prime Minister’s commitment to ‘back Scotch producers to the hilt’ and increases the tax discrimination of Scotland’s national drink’.”

He asked: “Does the First Minister share my and the industry’s concerns about the impact of Labour’s budget on the industry?”

John Swinney told told him: “The chancellor’s decision to raise alcohol duty while reducing draught [beer] duty increases the disadvantage that is facing the spirits sector.
“The Scotch whisky industry plays a vital role in our economy and supports tens of thousands of high-value jobs, especially in our rural and island regions [and in West Dunbartonshire and Argyll].
“I therefore agree with the concerns expressed by Mr MacDonald. Last week, I set out alternative taxation proposals that the United Kingdom Government could have made to avoid tax increases of that nature.

“Yesterday, I was delighted to visit the Scotch Whisky Experience in Edinburgh to hear more about the jobs that the industry supports and the formidable impact that it has on the Scottish economy in many localities.

“The changes that have been made by the UK Government are a matter of concern.”

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