The Chancellor has announced a scrapping of the alcohol duty escalator in today’s budget after being lobbied on the issue by Scottish Conservative leader Ruth Davidson.
While alcoholic drinks will now increase by inflation, duty on Scotch whisky will be frozen.
The major boost for Scotland’s whisky industry comes after Ruth wrote to George Osborne calling for a freeze on the duty for spirits, after raising the issue personally with him.
If the planned rise had gone ahead it would have added more than four per cent to the price of whisky, pushing the cost for many litre bottles of blended whisky to more than £20, with some of Scotland’s great malts breaking the £40 barrier.
This would have also meant that the tax on an average bottle of Scotch whisky would have exceeded more than 80 per cent.
Scottish Conservative leader Ruth Davidson MSP said:
“I am pleased the Chancellor has given the whisky industry a break by freezing duty and scrapping the alcohol duty escalator.
“This tax boost will not only benefit the big players, but also the small independent distilleries right across Scotland who rely on our domestic market for sales.
“I don’t believe any product should be taxed at 80% and if the Chancellor hadn’t acted, that’s what we would have seen for a bottle of Scotch.
“Taking this action shows the government is prepared to take on board legitimate concerns from across the UK.
“I put the case repeatedly to the Chancellor. The Chancellor responded.
“That’s a constructive Conservative approach, in stark contrast to the damaging politics of grudge and grievance practised by the SNP.”