Scotch Whisky Excise Duty

Graeme Morrice Excerpts

Wednesday 8th January 2014 Westminster Hall

[Mr Donohoe]

It is a pleasure to see you back in the Chair this afternoon, Mrs Main. It is just a pity that you do not have a glass of whisky in your hand, with which, at this time of the year, we would share a toast. Water will have to do, I am afraid.

It is quite incredible that we should have to have this debate, particularly in this very important year for the Scots, who are voting on whether to remain in the United Kingdom or to have a separate Government in Scotland. I shall pose a question: can anybody tell me how much taxation there is on a bottle of whisky that costs about £12.70?

[Graeme Morrice (Livingston) (Lab)]

It is 80%.

[Mr Donohoe]

On a bottle of whisky that costs £12.70, more than £10 is tax, including VAT. That is the level of taxation placed on our best industry in Scotland.

--- Later in debate ---

[Nicky Morgan]

The hon. Gentleman’s pub sounds as though it was a very interesting place, and I am very happy to listen to representations on the figures.

The hon. Gentleman asked about the impact of Budget 2013 on pubs. The British Beer and Pub Association survey showed that, following a reduction in beer duty, 76% of the pubs would increase investment and 61% would employ more staff. That is why this reduction was targeted particularly at pubs. That is not to say that I have not listened to the hon. Gentleman’s arguments.

Given the Government’s commitment to ensuring sustainable public finances, it was not possible to end the escalator on all alcoholic products, so they made a targeted reduction in beer duty. The hon. Gentleman asked whether the Government had failed to consider other alcohol duties. I was not in the Treasury at that point, but I do not think that that was so. However, the decision to reduce the duty on beer was taken in 2013.

I have heard the views of hon. Members and I assure them that I will consider these as part of the Budget process.

[Graeme Morrice]

I congratulate my hon. Friend the Member for Central Ayrshire (Mr Donohoe) on securing this debate. The Minister may not be aware that there is a considerable number of whisky producers in my constituency, including the North British Distillery in West Calder, Glenmorangie and Glen Turner in Livingston, and Ian MacLeod Distillers in Broxburn. This last wrote to me recently to express concern about the fact that, in the past five years, while we have seen a 44% increase in taxation on whisky, there has been a 12% reduction in UK sales.

[Mrs Anne Main (in the Chair)]

Order. Interventions must be brief.

[Graeme Morrice]

Given the current 80% taxation on whisky, will the Minister seriously consider approaching the Chancellor before the March Budget—

[Mrs Anne Main (in the Chair)]

Order. The Minister.

[Graeme Morrice]

To look at freezing alcohol duty and at the abolition of the duty escalator?

[Mrs Anne Main (in the Chair)]

Order. Minister.