Rachel Reeves urged to 'back Scotch whisky' and cut alcohol duty in Budget

dailyrecord.co.uk:

Rachel Reeves has been urged to "back Scotch whisky" and cut alcohol duty in the upcoming Budget.Business leaders across Scotland have called for the Labour Chancellor to lower the duty placed on spirits after the Tory government raised it by 10.1 per cent last year.In a letter sent to the Treasury, the Chancellor was told that last summer’s tax increase had a “damaging impact” on Scotland’s national drink.It was signed by business leaders from organisations including the Scottish Chambers of Commerce, the Scottish Tourism Alliance, Scotland Food and Drink, UK Hospitality Scotland and the Institute of Directors and Prosper.The group said a reduction on alcohol duty for Scottish whisky would “signal that Scotland is a competitive place to invest, would recognise the benefits of the sustainable employment for which the Scotch Whisky industry is renowned and would boost a central part of Labour’s ‘Brand Scotland’ vision”.The Scotch Whisky Association (SWA) said last year’s duty increase saw less money being raised by the Treasury.The SWA said in the 12 months after the duty was raised in August 2023 revenue plummeted by £300m.Liz Cameron, director and chief executive of the Scottish Chambers of Commerce, said: “Scotch Whisky is one of Scotland’s most iconic industries, but the 10.1% tax rise last year clearly damaged confidence, which in turn impacts investment and the ability to drive growth.“HM Treasury data also shows that the tax rise reduced revenue to support public services.

Whichever way you look at it, the double-digit rise cost the Treasury £300m.“The new Chancellor has a chance to change direction by supporting this home-grown global success story by reducing the tax burden on Scotch Whisky, supporting