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Call for rethink on UK Government 10.1% whisky tax rise

The rise in spirit duty was announced by Chancellor of the Exchequer Jeremy Hunt during this year's spring budget.

Call for rethink on UK Government 10.1% rise on whisky duty. Image: Shutterstock
Call for rethink on UK Government 10.1% rise on whisky duty. Image: Shutterstock

Moray Council will be asked to lobby the UK Government to think again about a 10.1% tax hike on whisky.

The rise in spirit duty was announced by Chancellor of the Exchequer Jeremy Hunt during this year’s spring budget.

It means 75% of the price of an average bottle of whisky will be tax.

The increase will also widen the gap between spirits and other alcohol.

10.1% whisky tax hike

Next week the economic development and infrastructure committee will be asked to write to Mr Hunt calling for a reversal of the policy as a matter of urgency.

SNP councillor Juli Harris is putting forward the motion.

Ms Harris said: “We’re looking for some sort of parity for the whisky industry.

“Around 50% of whisky made in Scotland comes from Speyside.

“I’m a ward councillor for Speyside Glenlivet, and it’s really important we lobby them, and take into consideration the importance of this for the economy in Moray.

Speyside Glenlivet councillor Juli Harris. Image: Jason Hedges/DC Thomson

“This comes in from August so there is still time for a change.”

SNP member for Buckie Sonya Warren is seconding the motion.

She said: “Anyone who has stayed in Moray for any length of time will know people connected with the distilling industry.

“We’ve seen the impact previous recessions have had on the industry, and it’s vital we do something to protect it.”

Buckie councillor Sonya Warren. Image: Sandy McCook/DC Thomson

The Scotch Whisky Association is campaigning for the tax rise to be reversed.

It described the move as a “historic blow” to the industry.

Also, the increase is expected to limit the distillers’ ability to invest in job creation.

According to the association those choosing to drink 14 units of beer a week will be taxed £2.67.

For wine that will be £3.99 and for whisky it will be £4.42.

‘Historic blow’

The organisation also campaigned to be included in the Energy Bill Relief Scheme that gave a discount on wholesale gas and electricity prices.

The economic development and infrastructure committee will discuss the issue on Tuesday (2 May).

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