A SPEYSIDE MP has secured a Westminster debate on the Government’s support for the Scotch whisky industry, as they argue the current tax regime is costing the UK Treasury hundreds of millions in lost revenue.
Graham Leadbitter, whose Moray West, Nairn and Strathspey constituency is home to Speyside Malts and one-third of Scotland’s whisky distilleries, will challenge the UK Government’s recent hikes to alcohol duty at a debate in Westminster on Wednesday.
The SNP MP plans to encourage Labour to do more to support the world-renowned industry as he said it is currently “over a barrel” due to the previous Tory administration’s whisky duty tax hike.
Research from the Scotch Whisky Association (SWA) showed that after the Tory government raised taxes on whisky products in 2023, tax revenue raised by the industry fell by £300 million.
Keir Starmer made a pre-election promise to back the industry “to the hilt”, but alcohol duty was raised again in the Chancellor’s budget in October last year.
Leadbitter (below) said he was delighted to have secured the debate as he plans to highlight the importance of the industry and aims to hold the Labour accountable for their “economically illiterate moves”.
He said: “Any Scottish MPs worth their salt will join us in demanding the best for our industries.
“But unfortunately our support for Scotch Whisky isn’t shared by the Labour Government, whose punitive tax regime doesn’t just have the industry over a barrel, but is costing the UK Treasury hundreds of millions in lost revenue.
“When the last Tory government hiked Whisky Duty, tax revenue raised by the industry fell by £300 million. The sensible option, both for supporting Scotch Whisky and Treasury receipts would have been to cut Whisky Duty, instead the Labour party raised it again.
“Economically illiterate moves like that are even more concerning now that the industry faces growing costs, and the prospect of Trump tariffs which will limit sales of Whisky in one of its most important markets.”
Leadbitter, who is also a Vice-Chair of the APPG on Scotch whisky, will also warn MPs about the impact of potential tariffs imposed by Donald Trump’s administration.
Last week the drinks giant Diageo warned another round of tariffs could cost them £161 million in profits in their Mexico and Canadian brands alone.
A former CEO of Whyte & Mackay and the owners of Ballindalloch Distillery in Leadbitter’s constituency have also raised serious concerns about any potential future tariffs.
Previously when tariffs came into effect in 2019 the SWA reported a “stark” and immediate 25% drop in exports to the US for the final quarter of 2019.
Leadbitter said the Labour Government should “heed” the industry’s warnings which he will deliver in the debate and encouraged them to recognise the economic benefits Scotch whisky delivers.
He said: “So far Westminster has shown itself to be no friend of the Whisky industry, but it can, and should, turn that around by taking heed of the warnings I’ll deliver in this debate, as well as the analysis from experts like the Scotch Whisky Association.
“We’re fortunate in Scotland to be home to the finest Whisky brands in the world. We recognise the economic benefits and soft power that comes with that, the rest of the world recognises it, it’s time now for Westminster to recognise it too.”
A UK Government spokesperson said: “We’re committed to supporting businesses, including Scotch whisky producers, through capping corporation tax at 25% and publishing a business tax roadmap so that future investments can be planned with confidence.
“To provide specific support to the Scotch Whisky industry, the UK Government will reduce fees for geographical verification making it cheaper for producers to badge their products.”
