Exclusive:Scottish Labour MPs under pressure to block UK Budget whisky tax hike
The SNP have urged Labour MPs to “stand up for Scotland” and vote against the spirits duty rise proposed in the Budget
Scottish Labour MPs are under pressure to block the UK Government’s increase in tax on whisky in the Commons today.
The SNP have urged Labour MPs to “stand up for Scotland” and vote against the spirits duty rise proposed in the Budget this evening.
It was announced last Wednesday that alcohol duty will rise in line with inflation - 4.55 per cent - in February.
The Scotch Whisky Association said this fourth consecutive duty increase on spirits means the tax burden on the average bottle of whisky will rise to 74 per cent. It has also gone up 24 per cent since 2023.
This means that £12.84 of the average price of a bottle of Scotch Whisky will now be taken in tax, including £9.95 in excise duty on every bottle.
The rise in alcohol duty expected to go to a vote as Budget resolutions go through the Commons this evening.
Graham Leadbitter MP, whose Moray West, Nairn and Strathspey constituency is home to Speyside Malts and one-third of Scotland’s whisky distilleries, said: “Today SNP MPs will stand up for Scotland, stand up for our national product and stand up for the thousands of jobs which depend on the success of Scotch whisky. We will vote against Andy Burnham’s decision to hammer the whisky industry with another massive tax hike.
“The question now for Labour MPs in Scotland is whether they have the backbone to join with the SNP, to stand up for Scotland and vote against the damaging decisions of their own UK Labour Government.
“Andy Burnham promised to deliver growth in every postcode – the disastrous decision to inflict higher taxes on Scotch whisky show that this promise does not apply to Strathspey.
“The Labour Party promised to back Scotland's whisky sector "to the hilt" before the election, but for the third straight year the UK government has decided to hammer this industry - our greatest export deserves better.
"The US dropped its whisky tariffs after John Swinney stepped in and now the UK Labour Government must rethink this economically devastating decision and cut whisky tax.
“Our key industries are under attack from crippling Westminster taxes. If these sectors were based south of the border, they would never be subjected to the same treatment - through a fresh start with independence we can take full control over our economy, back Scottish business and build a wealthier Scotland.”
The whisky industry contributes £7 billion to Scotland’s economy and supports over 65,000 jobs across the UK.
The UK is the fifth-largest global market for Scotch whisky.
Earlier this year, Donald Trump lifted tariffs on Scotch whisky exports to the United States. It sparked a row between the Scottish and UK Governments over who deserved the credit.
The US President messaged First Minister John Swinney to congratulate him on his contribution, after the SNP leader lobbied the president on his two visits to the UK and on a trip the the Oval Office.
But Scottish Secretary Douglas Alexander said it was the result of "relentless engagement and negotiation" by the UK government, "opening doors for Scottish exporters across the world".
Scottish Labour and the UK Government were approached for comment.
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