Income Tax (Charge)

Graham Leadbitter Excerpts

Tuesday 5th November 2024 Commons Chamber

[Graham Leadbitter (Moray West, Nairn and Strathspey) (SNP)]

The theme of today’s debate is fixing the NHS and reforming public services. To do that, the Government require a strong will to drive reform and financial support for public services that were hammered for far too long by 14 years of Tory austerity.

As a former council leader who dealt with tightening public sector budgets against a backdrop of changing demographics, which increased pressure on the NHS, care services and early services, I am well aware of the impact of austerity on our communities in Scotland and, indeed, throughout the UK. I welcome the substantial increase in investment in public services in the Budget, but the Government could generate more to support the NHS and public service reform. I am referring to the flawed increase in spirits duty, which follows the brutal increase in spirits duty introduced by the Tories last year.

I am proud to represent Moray West, Nairn and Strathspey, which is home to 48 distilleries, including some of the best known brands in the world—brands that can be found in pretty much every major airport and high-end department store. The industry has a GVA—gross value added—of more than £7 billion, and exports more than 40 bottles of whisky every second. The whisky sector has been investing heavily in sustainable operations and decarbonising its production, which has led to incredible innovations in hydrogen for energy, waste treatment and waste heat transfer, shortening the supply chain and much more. Those innovations are then used in other sectors, including the public sector, to drive sustainable reform in how services are delivered.

Despite independent studies showing that the Treasury lost £300 million because the Tory duty increase went too far, the incoming Labour Government have pushed that even further—a move likely to cost the Treasury even more in lost revenue, when a duty cut would have driven sales of a high-quality product and generated increased revenue, supporting jobs and investment.

In the election campaign the Prime Minster stated that he would

“back Scotch producers to the hilt”

The Scotch Whisky Association described that commitment as “broken”, with its chief executive, Mark Kent, stating:

“This is more than a broken promise, to many it will smack of a betrayal. Scotland’s national drink, and the associated investment and jobs, has been actively undermined and discriminated against.”

Those are strong words, and the Government should take heed of them. Instead of penalising this incredibly successful and innovative jewel in the crown of our food and drink sector, the Government must cut the duty on spirits to generate more sales and more tax revenue to support public services—revenue that could be used to protect GP practices, like the rest of our NHS, from changes to employer’s national insurance. It could also go some way to avoiding the outrageous cut to winter fuel payments—a cut that has a particularly difficult impact in my constituency, which has some of the highest altitude and coldest communities in the UK. I hope that the Government will listen and act on those concerns.