Rachel Reeves must start treating Scotch Whisky like the national asset it is
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3 min read
The whisky industry is getting fleeced by a deeply unfair alcohol duty system – the Chancellor must give Scotch parity with beer
With distilleries like Lindores Abbey – where monks were producing uisge beatha in 1494 – in my constituency, it’s no wonder that I’m a supporter of Scotland’s most iconic industry. However it is baffling how successive governments are not, and are instead continually failing to back this vital industry through our alcohol duty system. This autumn the Scotch Whisky Association is calling for a multi-year freeze to spirits duty; the government must take its head out the sand and listen.
The facts don’t lie. The Scotch Whisky industry generates billions of pounds in Gross Value Added (GVA) for the UK every year – in Scotland, £3 in every £100 of GVA can be attributed to it. It supports 66,000 jobs across the UK and 41,000 directly in Scotland, including in my own constituency.
Why then, is the government choosing to hammer the industry and put this economic contribution in jeopardy? Between National Insurance Contribution increases, Extended Producer Responsibility fees, increased energy bills, and overseas tariffs, the Scotch Whisky industry is facing financial pressure from all sides. And the kicker: whisky and other spirits are getting fleeced by a deeply unfair alcohol duty system which is in the direct control of HM Treasury.
A pint of beer enjoys a far more advantageous tax rate, despite having significantly more calories and alcoholic units than a single Scotch. If we’re talking about a bottle of Scotch, over two-thirds of its price is tax.
It supports 66,000 jobs across the UK and 41,000 directly in Scotland
The disparity in the tax burden is putting Scotch and spirits producers in a precarious position. A survey of Scotch Whisky companies found the overwhelming majority are expecting to defer investment or take it outside of the UK and, worryingly, are also expecting to make job cuts. And with 87 per cent concerned that the duty level will rise once again in the autumn, it’s clear that this government is diluting business confidence.
It’s not all about numbers – it’s also about the names and faces involved making Scotch Whisky. Kingsbarns Distillery and thousands of others are having their hard work taken for granted and their jobs put at risk by the duty regime – it’s time for that to stop.
This Budget, the industry needs a multi-year freeze to duty on spirits to give businesses the long-term confidence they need to invest in their future. I am supporting this alongside the millions of other Scots who don’t want to see an important part of their nation’s cultural heritage hurt by Westminster and think more should be done to back Scotch.
Rachel Reeves must start treating Scotch Whisky like the national asset it is. This industry doesn't need lip service – it needs lasting support through the alcohol duty system. The industry is not asking for preferential treatment – it wants fairness and parity with beer. After all, pubs cannot survive on beer alone.
Backing Scotch means backing jobs, communities, and growth across the UK. Anything less is short-sighted – and unforgivable.
Wendy Chamberlain is Liberal Democrat MP for North East Fife and chair of the Scotch Whisky APPG
