SWA urges government to ‘stand up for Scotch’

The Scotch Whisky Association (SWA) is urging the UK government to “stand up for Scotch” and lower spirits duty by a further 2%, after revealing last year’s cut contributed to a £96m increase in revenue for the Treasury.

David Frost, CEO of the SWA, was in London to launch the new ‘Fair Tax for Whisky: Stand up for Scotch’ campaign

Today marked the launch of the SWA’s ‘Fair Tax for Whisky: Stand up for Scotch’ campaign, which is asking the Chancellor to repeat his actions in last year’s Budget and reduce the tax and VAT currently paid on a bottle of Scotch from 76% to 74%.

Last year’s tax reduction was the first cut in spirits duty in almost 20 years and only the fourth time tax on whisky has been lowered in the last century.

New figures from the SWA show this helped generate a £96m increase in revenue from spirit drinks between April and December 2015 compared to the same period in 2014.

It means revenue grew 4% from £2.4bn to nearly £2.5bn during this time frame.

“The government’s own figures tell a simple story: when tax is too high, if you cut it, revenues go up not down,” commented David Frost, chief executive of the SWA. “Along with the British public, we believe that the current tax of 76% on a bottle of Scotch is too high.

“An ordinary drinker will hand over almost £10 in tax on each bottle they buy. We would like to see a 2% cut again this year.

“George Osborne listened to the industry last year when we said that a cut on duty would increase confidence, safeguard jobs, help consumers, and thereby ultimately benefit the Treasury.

“We now have the figures to prove it. That’s why this year we’re asking the Chancellor to continue what he has started.

“Deliver fair tax for whisky, free the industry to invest and grow, and feel the benefit through increased revenue. It really is common sense to stand up for Scotch.”

The whisky industry currently provides more than 40,000 jobs in the UK, and welcomed seven new distilleries last year with plans to open between 30 and 40 new establishments in future.

“Piling taxes onto spirits hits those on lower incomes the hardest, only adding to the cost of living,” said Jonathan Isaby, chief executive of The TaxPayers’ Alliance.

“Last year’s bold move by the Chancellor helped the industry and the ordinary drinker but also saw a boost for the public finances, which was a clear demonstration that cutting taxes can increase revenues.

“Mr Osborne would do well to give taxpayers and businesses another timely boost at the coming Budget.”

New SWA Edinburgh head office opens

David Frost, SWA, and deputy first minister John Swinney MSP open the new Edinburgh office

Earlier this week, the SWA celebrated the opening of its new Edinburgh head office, located in the Quartermile area of the city.

Deputy first minister John Swinney MSP was there to officially open the office, said to “symbolise” the partnership between the Scottish government and one of the country’s biggest industries.

The office will house 32 employees, and follows the opening of the SWA’s London office last year.

“We’re delighted the deputy first minister agreed to mark the opening of our new head office,” said Frost. “The office provides a modern working environment for our employees and a showcase for our industry, which combines the best of the traditional and modern.

“We believe other industries can learn form the success of Scotch whisky and we are keen to work in collaboration with the Scottish government, for example to promote exports, sustainability and skills.”