Moray whisky: Chancellor announces freeze on duty
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A freeze on alcohol duty announced today by the UK Government has been welcomed by the Scotch Whisky Association (SWA).
As part of his Autumn Statement, Chancellor of the Exchequer Jeremy Hunt cancelled a further hike in duty following the 10.1% increase in August.
Despite today’s positive announcement, Scotch Whisky continues to be taxed at a higher rate per unit of alcohol than wine, beer and cider.
The duty rate on spirits remains at the August level.
That means of the £15.63 average price for a bottle of Scotch Whisky, £11.40 is collected in taxation through duty and VAT – a tax burden of 73%.
Mark Kent, the chief executive of the SWA, said that the Treasury provided "much-needed certainty" for the year ahead.
He added: "Under the current duty system, Scotch whisky is still put at a disadvantage, based on a fundamental misunderstanding of how people consume alcohol and modern drinking trends.
"We want to continue the discussion with the government about how the tax system can more closely reflect the number of units in a typical drink, rather than the strength of the finished product."
Moray MP Douglas Ross said the decision will be met with relief across the industry in Moray – which is home to the most distilleries of any constituency in the UK – following last year’s duty rise.
He added: "The industry is hugely important for the local economy and jobs in Moray and I’m sure many local people will be raising a dram to this freeze announced by Jeremy Hunt."
