Carmichael backs distiller calls for spirits duty cut in Spring Budget

Orkney and Shetland MP, Alistair Carmichael, has today backed calls by the Scotch Whisky Association (SWA) for the Chancellor to cut spirits duty in the upcoming Budget. Mr Carmichael threw his support behind the initiative following recent reports that tax take for the Treasury had fallen following a duty hike last year.

SWA analysis of HMRC tax receipts data found that duty revenue from spirits fell to £1.87 billion between August to the end of December – a year-on-year drop of 5%, costing the Treasury £98m. There are now cross party calls for Jeremy Hunt to become only the fourth chancellor in history to cut spirits duty.

Mr Carmichael recently visited Lerwick Distillery, which aims to become Scotland’s most northerly whisky distillery, to see their progress to date.

Mr Carmichael said:

“If Jeremy Hunt wants to be known as a tax cutting Chancellor then he can start by reversing his counterproductive tax hikes on Scotch whisky. Last year the Tories raised spirits duty and lost money in the process – a good summary of their economic incompetence in recent years.

“When I was in government we fought hard for against the naysayers and delivered a cut in spirits duty. It was a massive boost for the industry and increased the money coming in to Treasury. That is what you can achieve when you have the political will.”

“This is an industry that is of critical importance to some of the most economically fragile communities in the country. Distillers are a pillar for our economy in the Highlands and Islands – we need to support their growth, not drag them down with ever-higher taxes.”

He added:

“The growth of distilling and brewing in the Northern Isles in recent years has been quite remarkable. Both are now a well-established part of our local food and drink offering.  Beers, whisky gin and rum all have their place. Whether it is the long-established brands like Highland Park and Scapa or the more recent arrivals they all have a great story to tell and have tremendous potential to grow, adding value to our local economy. 

“Most recently I was able to meet the team at the Shetland Distillery in Lerwick, to see for myself the progress that they are making in the construction of their distillery. For companies like them, and the Deerness Distillery in Orkney, whisky is not an easy market to break into, but their determination and perseverance should be encouraged and rewarded. The Chancellor should think about entrepreneurs like them when making his budget decisions."