Oral Answers to Questions

Debate between Alistair Carmichael and Damian Hinds

Tuesday 1st March 2016 Commons Chamber

[Mr Alistair Carmichael (Orkney and Shetland) (LD)]

7. What assessment he has made of the effects on the economy of the reduction in duty on spirits announced in the 2015 Budget.

[The Exchequer Secretary to the Treasury (Damian Hinds)]

The 2% duty cut at the March Budget 2015 continues to support the 296,000 people across the sector, including such distilleries as Highland Park in the right hon. Gentleman’s Orkney and Shetland constituency.

[Mr Carmichael]

The Minister will recall that, last year, the Red Book estimated that the cuts in alcohol duties would lead to a reduction of £185 million in revenue. In fact, from April 2015 through to January 2016, we have seen a £190 million increase in revenues. Will he therefore look very carefully at the request from the Scotch whisky industry for a further 2% cut in spirits duties this year?

[Damian Hinds]

I know how much the sector values the cut in the duty—it was the first since 1996—and it is great to see the industry in good health, with the number of distilleries and exports to other parts of the world growing strongly. I have received representations from the Scotch Whisky Association among others in relation to the upcoming Budget.