Stop the Scotch Super Tax

SWA Budget Submission 2018

26 Sep 2018

"We are very clear about the importance and significance of industries like the Scotch Whisky industry." This claim, made by Prime Minister Theresa May on 7th August 2018, will be put to the test in the Autumn Budget. In order to support Scotland's national drink, we call on the Chancellor to freeze duty on spirits.

Freezing duty on Scotch Whisky will prove the UK government's commitment to supporting the Scotch Whisky industry. Importantly, it will also boost government revenue, enable the industry to continue to invest in the UK economy and help consumers to make responsible choices about alcohol consumption.

HM Treasury's own figures show that the freeze to spirits duty in November 2017 has increased revenue available to government which can help fund vital public services. Between February 2018, the new implementation date for policy changes, and August 2018, spirits revenue grew by £163m to £1,937m - an increase of 9.1% year on year.

In addition, a new economic analysis conducted by the Centre for Economic and Business Research, shows that by continuing to freeze spirits duty, the Chancellor can grow revenue by an additional £64m in 2019/20 and by almost £200m by 2021.

Both the real-world data and the economic modelling suggests that a more competitive rate of duty for spirits will boost revenue and grow the UK economy.

In a more stable excise environment, the Scotch Whisky industry has been able to do its part to boost the UK economy, investing over £500m in capital projects, creating jobs in manufacturing, tourism and the supply chain.

In the Autumn Budget, we will look to the Chancellor to support Scotch and signal to the world that we are proud of Scotland's national drink and eager to back the industry's success.

The SWA's full Autumn Budget submission is available below.