Calls for 'long overdue' drink duty review
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A CALL for "long overdue" review into alcohol duty has been backed by Moray's MP.
Douglas Ross has urged UK Ministers to get behind the Scotch whisky industry, along with other drinks producers, in scrutinising the tax.
Mr Ross led an adjournment debate in the House of Commons to argue for a clear timetable for the completion of an HM Treasury review that was part of the Conservative manifesto at the 2019 general election.
The Scottish Conservative MP said there were more than 50 distilleries in his Moray constituency, along with several craft beer breweries, that make a significant contribution to the UK economy.
However, under the current tax system, Scotch whisky is taxed more heavily in its home country than imported wine – with three of every four pounds spent on whisky taken as tax.
Mr Ross said there is an opportunity to “address historic injustices” and reshape the system of duty to better support domestic producers now that the UK is out of the EU.
In response, Economic Secretary to the Treasury John Glen stated the whisky sector had gone through a period of “remarkable” growth but had also suffered a “very challenging” year. He went on to say that the review only came about due to the campaigning of Mr Ross and his fellow Scottish Conservative MPs. Treasury officials have been working with the industry and have received more than 100 submissions through a call for evidence.
Further updates will be provided “as quickly as we can”, and Mr Glen dded that the Chancellor is “taking a very close interest” in the issue and is keen to make the “most swift progress possible”.
Mr Ross said: “I am very keen to see action on this review that was announced during the last general election.
“The response from the minister was encouraging, and it is clear the UK Treasury is working constructively with the industry in taking this forward.
“As I said in my contribution to the debate, we have an opportunity to right a historic wrong in the way that in the way that we tax domestic alcohol producers.
“The biggest sector here in Moray is of course whisky, with more than 50 distilleries. But there are also craft beer and gin producers here and in other parts of the UK that want to see changes to the current system.
“We can develop a new system that is fairer and will encourage more growth in our home-based industries here in Moray and across the country.
“As I said last night, this review is long overdue and I will hold Treasury Ministers to their promises of swift action to deliver for the drinks industry.”
Moray's SNP MSP Richard Lochhead has also called for the UK government to support the Scotch Whisky industry, which has been hit hard by US tariffs, coronavirus, and Brexit. The plea came following a meeting with the chief executive of the Scotch Whisky Association.
Mr Lochhead commented: “At my meeting with Karen Betts, Chief Executive of the Scotch Whisky Association it was again brought home to me just how serious a situation one of our most valuable industries in Moray is facing.
"In fact, the sector is facing a triple whammy of the US tariffs, Covid, and Brexit all of which are costing the industry dear due to a rise in costs, and reduction in exports and sales.
“We were promised by Boris Johnson that sorting out the biggest issue in particular, the US tariffs, was an absolute priority but we now know it is absolutely not. There is clear frustration at the UK’s lack of urgency that has resulted in a fall of £500 million in exports and my constituents in Speyside and Moray want to see the UK government doing more for the sector.
"I am urging the UK government to come to the aid of the whisky industry as a matter of urgency both in the budget and by accelerating the negotiations with the new US administration to scrap the tariffs and sorting out the Brexit mess.
“The UK government must recognise that our world famous Scotch whisky industry is much more than a cash cow, it sustains thousands of jobs across Moray and Scotland.”
