Keith Brown MSP

Local MSP Keith Brown has expressed relief that Chancellor Alistair Darling has reportedly been sent home to think again on increasing whisky duty.

At the time of an economic downturn the whisky industry vital to employment in his Ochil constituency is due to be hit by a net tax increase according to analysis by the Scotch Whisky Association. They calculated that the proposed 8% increase in duty on spirits in the Pre-Budget Report amounts to a 29p increase in the duty on a bottle of whisky, even after the cut in VAT.

This is on top of the 59p increase that already took place in March for a total of 88p on a bottle of whisky in one calendar year.

Keith Brown MSP said:

“The Chancellor was talking about trying to rescue the national economy but almost slit the throat of Clackmannanshire’s with some dodgy arithmetic. Whisky alone employs 41,000 people across Scotland, and Diageo is one of the biggest employers in the county. Now more than ever those jobs are vital.

“He didn’t even have the honesty to include the detail of the whisky duty rise in his live statement – instead it was buried deep in the 250-page report published alongside. Now he is backtracking to say that he never wanted the duty rise to do more than make up for the tiny cut in VAT.

“It’s novel of him to admit a mistake, but hardly encouraging. Clackmannanshire can be relieved that its vital industry is not being hit, but will be worried about where else the Chancellor got his sums wrong. Can you imagine the Chancellor looking someone in the eye and apologising to them for making them unemployed because he couldn’t do his long division?

“It’s bad enough dealing with the years of bad policies over lending and debt that were implemented deliberately - now we get to suffer from Alistair Darling’s sloppy mistakes as well.”

If followed through, the announcement in the Pre-Budget Report would increase the excise on an averaged 70cl bottle at 40% to £6.45. Even factoring in the VAT reduction, the total tax burden would increase from £7.42 to £7.71.

The Scottish Government and its party colleagues in Westminster have made the case for the fair taxation on whisky, based on equal treatment to drinks based on alcoholic content after the Chancellor’s “bombshell” Budget in March 2008 which increased the duty on a bottle of whisky by 59p – the highest increase the rate of duty on whisky since 1975.

Duty per litre of alcohol has increased by £1.79 to £21.35, higher than the increases of £1.58 in 1991 and £1.61 in 1992. In April 1975, the equivalent duty per litre increased by £1.95 (the rate was set per proof gallon).

For more information contact Keith Brown on 01259 219 333 or 0131 348 6335.