In response to Chancellor MP's UK Budget announcement
today, 28 October, the Scotch Whisky Association has warned a
fourth consecutive duty increase on spirits will have damaging
consequences for the sector and supply chains.
Mark Kent, Chief Executive of
the SWA said: Today's spirits duty increase announced by the
Chancellor is a disappointing blow to the Scotch Whisky sector,
its supply chain and the local communities it supports.
Another duty increase the fourth in as
many years will see the tax burden on the average bottle of
Scotch Whisky rise to 74%. Further support has been offered to
small brewers and cider makers, excluding small producers in the
spirits sector which is hugely important to the Scottish economy.
The fact remains that consumers who don't choose to drink pints
and the hospitality businesses who rely on spirits as part of a
diverse and modern offering are being unfairly
penalised.
We've repeatedly warned that
increasing the spirits super tax will not only pile further costs
on distillers, but will harm the supply chain and reduce Treasury
revenue. Nobody wins when hard-pressed businesses are taxed to
the hilt.
The UK Government should listen to
business and pay attention to the evidence. We will fully
consider the findings of the evaluation report published today
and press the Treasury for systemic reform to provide greater
fairness for Scotch Whisky. Today's decision to increase duty,
alongside the inherent imbalance at the heart of the current duty
system, puts further pressure on the sector, stalls investment
and ultimately limits our ability to generate growth.
