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UK government minister hints at whisky tax cut

20 DFS employees at Singapore’s Changi Airport have already been trained to provide expert information and advice on buying whiskies
20 DFS employees at Singapore’s Changi Airport have already been trained to provide expert information and advice on buying whiskies

A UK Government minister has hinted that new tax cuts could be on the way for the whisky industry next month.

Priti Patel, the Exchequer secretary to the Treasury, said the department was “particularly receptive” to helping sectors in remote communities such as Scotch.

Chancellor George Osborne agreed last year to  scrap the alcohol duty escalator and freeze excise following an extensive campaign by whisky chiefs.

But the industry now wants him to go further at next month’s Budget and cut the tax by 2%.

Priti Patel
Priti Patel, Exchequer secretary to the Treasury

Ms Patel was speaking at a Westminster debate on whisky, secured by Argyll and Bute MP Alan Reid.

The Liberal Democrat claimed that duty levels were “unfair” and that they risked “killing the goose that’s laying the golden eggs”.

The minister responded: “I need no persuading about the considerable economic impact the industry brings to Scotland and to the United Kingdom.

“Obviously all decisions with regards to taxation are under constant review, and we are particularly receptive to help industries flourish in some of our most remote regions.

“Decisions on the duty will be made by the chancellor at the Budget, and I do not wish to pre-empt anything in relation to the Budget.

“We want to ensure that Scotch whisky is continued to be enjoyed around the world for many years to come, and of course we want the Scotch whisky industry to flagship brand.”