Oral Answers to Questions

Debate between Dan Tomlinson and Maureen Burke

Tuesday 4th November 2025 Commons Chamber

[Maureen Burke (Glasgow North East) (Lab)]

7. What fiscal steps she is taking to help support the Scotch whisky industry.

[The Exchequer Secretary to the Treasury (Dan Tomlinson)]

The Government value our world-leading distilling industry and recognise that the spirits sector has found recent economic conditions challenging because of both tariff uncertainty and high energy costs. The Scotch industry is set to be among the biggest beneficiaries from the landmark trade deal that this Government secured with India, which is set to reduce tariffs from 150% to 75% initially, and then to 40% over time.

[Maureen Burke]

Scotch whisky is one of Scotland’s greatest products, with high demand at home and across the globe, but many are worried about the challenges facing the industry. The Scotch Whisky Association is calling for a multi-year freeze on excise duty for spirits to relieve some of those pressures and to back the wider hospitality sector. Will the Minister join me, GMB Scotland and others by committing to freeze spirits duty in the Budget later this month?

[Dan Tomlinson]

My hon. Friend is a strong advocate for the businesses and industry in her constituency and in the areas nearby. As she is aware, the vast majority of Scotch is exported, so it is not subject to UK excise taxes. Nevertheless, the Government appreciate the importance of the domestic market to Scotch producers, and I do acknowledge the wider pressures facing the industry. On her specific question, the Government’s baseline assumption remains that alcohol duties will be increased with inflation each year to maintain their real-terms values, which means that any cut or freeze would come at a cost to the Exchequer. Of course, as with all taxes, the Chancellor—not a junior Treasury Minister—will confirm her decisions on alcohol duty as part of the Budget process in the normal way.