Asked by: Martin Docherty-Hughes (Scottish National Party - West Dunbartonshire)
Question to the HM Treasury:
To ask the Chancellor of the Exchequer, what assessment he has made of the potential impact of changes in alcohol duty rates from 1 August 2023 on inflation.
Answered by James Cartlidge - Minister of State (Ministry of Defence)
The Government is unable to speculate on the content of the Spring Budget, which takes place on 15 March. When setting alcohol duty rates through the usual Budget process, the Government aims to balance the impact on businesses with its public health objectives, and to ensure that the public finances are on a sustainable footing.
Any impacts from changes to the duty rates made at the Spring Budget 2023 will be set out in the Tax Information and Impact Notes published following the Budget.
The spirits industry, including Scotch Whisky, has benefitted from spirits duty being cut or frozen for nine out of the last ten fiscal events. Spirits duty is now at its lowest level in real terms since 1918. In addition to this, on 19 December the Government extended the current alcohol duty freeze by six months to align with the implementation of the alcohol duty reforms and reduce the impact of the duty changes on businesses.
Asked by: Martin Docherty-Hughes (Scottish National Party - West Dunbartonshire)
Question to the HM Treasury:
To ask the Chancellor of the Exchequer, if he will make an assessment with Cabinet colleagues of the impact of scotch whisky distilleries on (a) the local economy and (b) communities in Scotland.
Answered by James Cartlidge - Minister of State (Ministry of Defence)
The Government is unable to speculate on the content of the Spring Budget, which takes place on 15 March. When setting alcohol duty rates through the usual Budget process, the Government aims to balance the impact on businesses with its public health objectives, and to ensure that the public finances are on a sustainable footing.
Any impacts from changes to the duty rates made at the Spring Budget 2023 will be set out in the Tax Information and Impact Notes published following the Budget.
The spirits industry, including Scotch Whisky, has benefitted from spirits duty being cut or frozen for nine out of the last ten fiscal events. Spirits duty is now at its lowest level in real terms since 1918. In addition to this, on 19 December the Government extended the current alcohol duty freeze by six months to align with the implementation of the alcohol duty reforms and reduce the impact of the duty changes on businesses.
Asked by: Stella Creasy (Labour (Co-op) - Walthamstow)
Question to the Department for Environment, Food and Rural Affairs:
To ask the Secretary of State for Environment, Food and Rural Affairs, with reference to the Retained EU Law (Revocation and Reform) Bill, what plans she has to (a) revoke, (b) replace or (c) retain the Scotch Whisky Regulations 2009.
Answered by Mark Spencer - Minister of State (Department for Environment, Food and Rural Affairs)
Defra is in the process of analysing and assessing its retained EU law stock to determine what should be preserved as part of domestic law, and what should be repealed, or amended. This work will determine how we use the powers in the Bill, including in relation to the Scotch Whisky Regulations 2009.
Asked by: Ian Murray (Labour - Edinburgh South)
Question to the HM Treasury:
To ask the Chancellor of the Exchequer, what impact assessment his Department has undertaken of the cancelled duty freeze on the Scotch Whisky industry given the effect of RPI.
Answered by Felicity Buchan - Parliamentary Under Secretary of State (Department for Levelling Up, Housing and Communities)
On 17 October, the Chancellor announced a reversal of almost all of the tax measures set out in the Growth Plan that have not been legislated for in parliament. This includes the freeze of alcohol duty rates from 1 February 2023. The purpose is to ensure the UK’s economic stability and to provide confidence in the government’s commitment to fiscal discipline. The Chancellor made clear in his statement that the UK’s public finances must be on a sustainable path into the medium term.
The alcohol duty uprating decision and interactions with the wider Alcohol Duty Review, which continues as planned, will be considered in due course.
The government will continue to assess the impact of its decisions on alcohol duties, including through ongoing engagement with stakeholders.
Asked by: Ian Murray (Labour - Edinburgh South)
Question to the HM Treasury:
To ask the Chancellor of the Exchequer, what impact assessment his Department has made of the potential effect of cancelling the freeze in spirits excise duty on jobs maintained by Scotch Whisky distilleries.
Answered by Felicity Buchan - Parliamentary Under Secretary of State (Department for Levelling Up, Housing and Communities)
On 17 October, the Chancellor announced a reversal of almost all of the tax measures set out in the Growth Plan that have not been legislated for in parliament. This includes the freeze of alcohol duty rates from 1 February 2023. The purpose is to ensure the UK’s economic stability and to provide confidence in the government’s commitment to fiscal discipline. The Chancellor made clear in his statement that the UK’s public finances must be on a sustainable path into the medium term.
The alcohol duty uprating decision and interactions with the wider Alcohol Duty Review, which continues as planned, will be considered in due course.
The government will continue to assess the impact of its decisions on alcohol duties, including through ongoing engagement with stakeholders.
Asked by: Ian Murray (Labour - Edinburgh South)
Question to the HM Treasury:
To ask the Chancellor of the Exchequer, what impact assessment his Department has made of the potential effects of cancelling freeze in spirits excise duty on investment by Scotch Whisky distilleries.
Answered by Felicity Buchan - Parliamentary Under Secretary of State (Department for Levelling Up, Housing and Communities)
On 17 October, the Chancellor announced a reversal of almost all of the tax measures set out in the Growth Plan that have not been legislated for in parliament. This includes the freeze of alcohol duty rates from 1 February 2023. The purpose is to ensure the UK’s economic stability and to provide confidence in the government’s commitment to fiscal discipline. The Chancellor made clear in his statement that the UK’s public finances must be on a sustainable path into the medium term.
The alcohol duty uprating decision and interactions with the wider Alcohol Duty Review, which continues as planned, will be considered in due course.
The government will continue to assess the impact of its decisions on alcohol duties, including through ongoing engagement with stakeholders.
Asked by: Matthew Offord (Conservative - Hendon)
Question to the Department for International Trade:
To ask the Secretary of State for International Trade, What recent discussions she has had with her Indian counterpart on increasing (a) trade with and (b) foreign direct investment from India.
Answered by Greg Hands - Minister of State (Department for Business and Trade)
The United Kingdom’s trading relationship with India was worth over £24 billion last year and we are already India’s top investment destination in Europe. My Rt Hon. Friend for Berwick-upon-Tweed, the former Secretary of State for International Trade engaged with her Indian counterpart in August, and her successor, my Rt. Hon. Friend for Saffron Walden, has already spoken with him.
With a 1.4 billion population and an increasing demand for high quality products and services, India is a clear trading priority for the UK. Together, we have already reduced trade barriers ranging from medical devices to Scotch whisky and Welsh lamb.
We remain determined to strengthen our economic cooperation with India.
Asked by: David Linden (Scottish National Party - Glasgow East)
Question to the Department for Environment, Food and Rural Affairs:
To ask the Secretary of State for Environment, Food and Rural Affairs, what assessment he has made with Cabinet colleagues of the contribution of the Scotch whisky industry to the UK tourism sector and hospitality sector.
Answered by Mark Spencer - Minister of State (Department for Environment, Food and Rural Affairs)
Whilst no specific assessment has been made by the UK Government, according to the Scotch Whisky Association, the Scotch Whisky industry continues to provide a significant contribution to the Scottish economy with sustained export values of around £4.5 billion and £5.5 billion in gross value added (GVA) to the UK economy.
The 140 Scotch Whisky distilleries which operate across Scotland attracted around 2.2 million visitors in 2019, making this industry the third most popular tourist attraction. These figures demonstrate the employment opportunities that this industry provides for the UK tourist and hospitality sector.
Asked by: David Linden (Scottish National Party - Glasgow East)
Question to the Department for Environment, Food and Rural Affairs:
To ask the Secretary of State for Environment, Food and Rural Affairs, what assessment he has made of the impact of the scotch whisky industry on levels of employment in Scotland.
Answered by Mark Spencer - Minister of State (Department for Environment, Food and Rural Affairs)
Whilst no specific assessment has been made by the UK Government, according to the Scotch Whisky Association more than 11,000 people are directly employed in the Scotch Whisky industry in Scotland, and over 42,000 jobs across the UK are supported by the Scotch Whisky industry.
7,000 of these jobs are in rural areas of Scotland providing vital employment and investment opportunities to communities across the Highlands and Islands.
The Scotch Whisky industry continues to provide a significant contribution to the Scottish economy, with sustained export values of around £4.5 billion, and £5.5 billion in gross value added (GVA) to the UK economy, according to industry analysis. The 140 Scotch Whisky distilleries which operate across Scotland attracted around 2.2 million visitors in 2019 making this industry the third most popular tourist attraction.
In addition, 57% of distillers reported an increase in their number of staff in the past twelve months, with all respondents expecting to need to add to their workforces in the coming year. These figures outlined by the Scotch Whisky Association demonstrate the wide range of employment opportunities this industry provides to those in Scotland.
Asked by: David Linden (Scottish National Party - Glasgow East)
Question to the Department for Environment, Food and Rural Affairs:
To ask the Secretary of State for Environment, Food and Rural Affairs, what assessment he has made with Cabinet colleagues of the contribution of the Scotch Whisky industry to trends in the level of UK employment.
Answered by Mark Spencer - Minister of State (Department for Environment, Food and Rural Affairs)
Whilst no specific assessment has been made by the UK Government, according to the Scotch Whisky Association more than 11,000 people are directly employed in the Scotch Whisky industry in Scotland, and over 42,000 jobs across the UK are supported by the Scotch Whisky industry.
7,000 of these jobs are in rural areas of Scotland providing vital employment and investment opportunities to communities across the Highlands and Islands.
The Scotch Whisky industry continues to provide a significant contribution to the Scottish economy, with sustained export values of around £4.5 billion, and £5.5 billion in gross value added (GVA) to the UK economy, according to industry analysis. The 140 Scotch Whisky distilleries which operate across Scotland attracted around 2.2 million visitors in 2019 making this industry the third most popular tourist attraction.
In addition, 57% of distillers reported an increase in their number of staff in the past twelve months, with all respondents expecting to need to add to their workforces in the coming year. These figures outlined by the Scotch Whisky Association demonstrate the wide range of employment opportunities this industry provides to those in Scotland.