Opened the debate
Douglas Ross, MP for Moray, emphasised the need to deliver a competitive duty system for alcohol producers in the UK, particularly focusing on supporting Scotland’s national drink, Scotch whisky. He highlighted that since his election in 2017, the UK Treasury has frozen the duty on spirits at every Budget, which has been well received by the sector. However, Ross pointed out that over £3 of every £4 spent on a bottle of whisky is tax, one of the highest rates among alcoholic beverages globally. He welcomed the Conservative party's commitment in its 2019 manifesto to review alcohol duty to support British drink producers and praised the Prime Minister’s announcement during his election campaign. Ross argued that now is an opportunity for the UK Government to redress historical injustices in the alcohol duty system, using it not just as a revenue-raiser but also as a tool to back domestic producers. The Scotch whisky sector employs 11,000 people and supports over 40,000 jobs across the UK, contributing £5.5 billion annually. He noted that the industry has faced significant challenges due to the pandemic, including lost tourism income and business closures. Ross also mentioned the impact of the 25% US tariff on Scotch whisky exports, estimated at a loss of £500 million. Acknowledging the contributions of smaller producers like craft brewers and gin distillers, he called for changes to support these sectors in the upcoming Budget and beyond. He urged the Government to set out clear timetables for reforming the alcohol duty system.