It is time for a fair tax on Scotch
2 min read
Brendan O’Hara MP writes ahead of his debate on 'the contribution of the Scotch whisky industry to the UK economy' and calls for a further tax break in the Budget given tax levied on an average bottle is still 'an onerous 76%'.
As the MP for Argyll & Bute, which boasts the renowned “Whisky Coast” running from Tobermory in the north to Campbeltown in the south, I’m well aware of the importance of Scotch Whisky to the economy of my constituency, and to the whole of the UK.
Argyll & Bute has fourteen world-class distilleries. Due to the growing popularity of whisky, the number of distilleries along our “Whisky Coast” is set to rise. In many ways, the “Whisky Coast” is a microcosm of the role Scotch Whisky plays in the wider Scottish and UK economy.
Whisky is a vital economic asset that currently supports 40,000 jobs. That is why I am delighted that my application to debate ‘The contribution of the Scotch whisky industry to the UK economy’ was successful and I look forward to making that case to the UK parliament this afternoon.
As the chair of the Scotch Whisky All Party Parliamentary Group at Westminster, I never miss an opportunity to put the case for the industry to as wide an audience.
Scotch contributes more than £5 billion to the UK economy each year and almost 100m cases of Scotch are exported annually. It is the largest contributor within the goods sector to the UK’s net export performance. And without Scotch, the UK’s trade gap would be 11% wider.
Figures published last week revealed that after years of decline, there are green shoots of recovery for Scotch in the domestic market.
It is no coincidence that this recovery coincides with a much-needed cut in Excise Duty on spirits in the UK. In last year’s Budget, the Chancellor made the historic decision to cut duty by 2%; only the fourth reduction in the last century.
Despite the cut, the tax on an average priced bottle of Scotch still stands at an onerous 76%,
A fair tax for whisky doesn’t just benefit the industry and consumers, it also helps the Treasury’s coffers. Last year’s cut contributed to a £102m increase in revenue from spirits.
It’s time for the Chancellor to stand up for Scotch and implement a further reduction in excise on spirits in next Wednesday’s Budget.
Brendan O’Hara is the SNP MP for Argyll & Bute and chair of the All Party Parliamentary Group on Scotch Whisky.
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