Scotch Whisky Excise Duty

Jim Sheridan Excerpts

Wednesday 8th January 2014 Westminster Hall

[Jim Sheridan (Paisley and Renfrewshire North) (Lab)]

rose—

[Mr Donohoe]

I give way to my hon. Friend, who is the chairman of the all-party group.

[Jim Sheridan]

I want to take my hon. Friend back to the important issue of jobs. One of the significant factors of the Scotch whisky industry is that the jobs that it creates are excellent, well-paid, quality jobs. It is possible to tell that by the turnover of staff, which is very low.

[Mr Donohoe]

I am grateful to my hon. Friend for the point he makes, and it is clear that the issue of jobs is part of the equation.

--- Later in debate ---

[Nicky Morgan]

Mrs Main, I take the hint that you want me back on my feet and moving towards the conclusion of my speech.

I assure the hon. Gentleman that I will give this matter serious consideration in the run-up to the Budget. I shall certainly discuss it with my colleagues in the Treasury, including my right hon. Friend the Chancellor of the Exchequer.

[Jim Sheridan]

Will the Minister give way?

[Nicky Morgan]

I want to make progress and I am keen to get some further points in before the end of the debate, but I will try to take the hon. Gentleman’s intervention if I can.

The hon. Member for Central Ayrshire mentioned that spirit duty had risen by 44% between 2003 and 2013. I should point out that beer duty in that period rose by 56%, while still wine duty rose by 68%. We can trade as many numbers as we want, but I take the overall thrust of the arguments made today.

The hon. Member for Argyll and Bute (Mr Reid) asked about the spirits duty rate having risen by 37%. Duty on Scotch whisky has risen at a slower rate than beer duty over the medium term. The spirits duty rate was frozen between 1998 and 2008, and during that time duty rates on other alcoholic beverages increased. However, between the introduction of the escalator and 2013, the spirits duty rate rose by 37%, while other alcohol duty rates rose by 42%. I just wanted to put that on the record for the benefit of the House.

[Nicky Morgan]

I understand that point.

[Jim Sheridan]

One of the best adverts for Scotch whisky was the long tradition whereby the Chancellor used to take a glass of whisky on Budget day. Is there any reason why that no longer happens?

[Nicky Morgan]

The hon. Gentleman is tempting me down the path of speculating on the Chancellor’s alcohol intake, which I really do not want to go down. Of course, I notice that my glass is not in front of me this afternoon.

I thank hon. Members for this debate and thank the hon. Member for Central Ayrshire for securing it. I will be happy to study the written report of it. I hope that this debate shows the Government’s continuing commitment to the Scotch whisky industry and that we will help it where we can.