Union calls on Chancellor to freeze duty on Scotch whisky

Rachel Reeves has been urged to freeze alcohol duty on whisky in a bid to save jobs and boost the economy.

GMB Scotland, one of the largest unions in the industry, has written to the Chancellor warning her not to raise taxes on spirits.

In the letter sent ahead of next month’s budget Louise Gilmour, the union’s general secretary, called for a freeze on the duty until the next election in 2029.

She said the move would immediately help support exports and jobs while bolstering the Treasury’s revenues in the long-term.

Ms Gilmour welcomed the UK Government’s trade deals with major Scotch importers, including India, but said the benefits would take time to be seen as whisky producers report slowing international sales.

The industry faced a 10.1% duty increase two years ago under the Conservative Government, and last year the Chancellor chose to raise it again by the higher RPI rate of inflation.

The Scotch Whisky Association (SWA) warned last year that the previous increase resulted in whisky revenue falling by hundreds of millions of pounds, ultimately leading to a lower intake by HMRC.

Ms Gilmour said: “Vital steps can be taken now to back Scotch whisky amidst global trade uncertainty whilst still protecting public finances.

“A commitment to freeze excise duty throughout this Parliament will provide business confidence in a sector struggling under increased tariffs and taxation, while allowing the benefits of the Government’s economic policies to reach our members on the shop floor.”

Mark Kent, chief executive of the Scotch Whisky Association, backed the call, saying a freeze would be good for business and Government.

He said: “A freeze on spirits duty will bolster the jobs supported by the Scotch Whisky industry and boost Treasury revenue too.

“We’re grateful that GMB, and the business organisations who have also come out in support of the industry, recognise the vital role Scotch Whisky and spirits play in the Scottish and broader UK economy, and are prepared to speak up for Scotland and stand up for jobs in the Scotch whisky industry, its supply chain and our vital hospitality sector.

“A multi-year freeze on spirits duty would provide much-needed stability for Scottish and UK businesses and the communities that rely on the industry, allowing them to grow and invest at a time when all businesses are facing pressure.”

A Treasury spokesperson said: “The Chancellor has been clear that at Budget she will strike the right balance between making sure we have enough money to fund our public services and ensuring we can bring growth and investment to businesses.

“Our distilleries are vital to Britain’s economy, so we’re making it easier for them to thrive: no export duty, lower licensing fees, reduced tariffs, and a cap on corporation tax.

“Whisky and gin exporters are some of the biggest winners from our recent India trade deal, cutting tariffs from 150% to 40% and boosting whisky exports by £1 billion.”