Question to the HM Treasury:

To ask the Chancellor of the Exchequer, what assessment he has made of the impact of (a) Scotch Whisky distilleries and (b) reforms to alcohol taxation that widens the differential between spirits and categories such as beer and cider on (i) employment opportunities and (ii) local economies.

This question was answered on 21st February 2022
The Government has announced several changes to alcohol duty that will support the Scotch Whisky sector. At the Budget, spirits duty was frozen, making freezes continuous since 2017. As part of our alcohol duty review, the Government intends to move to a system where all products are taxed in reference to the litres of pure alcohol they contain, making the taxation of other products more consistent with Scotch. Above 8.5% ABV there is to be no differentiation between product categories, providing a more level playing field between spirits and other products. These changes will narrow the difference between Scotch, wines and high-strength ciders.

The Government is continuing to engage with interested stakeholders on these reforms. A consultation ran from 27 October 2021 to 30 January 2022, and the Government is now analysing the responses. A tax information and impact note will be published following the consultation when the policy is final, or near final, in the usual way.