Context
The Scotch Whisky Association is calling for a multi-year freeze on excise duty for spirits to relieve some of the pressures facing the industry and to back the wider hospitality sector.
Question
Scotch whisky is one of Scotland’s greatest products, with high demand at home and across the globe, but many are worried about the challenges facing the industry. The Scotch Whisky Association is calling for a multi-year freeze on excise duty for spirits to relieve some of those pressures and to back the wider hospitality sector. Will the Minister join me, GMB Scotland and others by committing to freeze spirits duty in the Budget later this month?
Answer from Dan Tomlinson (Exchequer Secretary to the Treasury)
My hon. Friend is a strong advocate for the businesses and industry in her constituency and in the areas nearby. As she is aware, the vast majority of Scotch is exported, so it is not subject to UK excise taxes. Nevertheless, the Government appreciate the importance of the domestic market to Scotch producers, and I do acknowledge the wider pressures facing the industry. On her specific question, the Government’s baseline assumption remains that alcohol duties will be increased with inflation each year to maintain their real-terms values, which means that any cut or freeze would come at a cost to the Exchequer.
Not addressed: Commitment to freeze spirits duty in the upcoming Budget was not given.
How: Acknowledges Pressures But Does Not Commit To Specific Action
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