Asked by: Jamie Stone (Liberal Democrat - Caithness, Sutherland and Easter Ross)
Question to the Department for Business and Trade:
To ask the Secretary of State for Business and Trade, what assessment her Department has made of the potential impact of increases in domestic excise duty on Scotch whisky on discussions to reduce tariffs and excise duty on that whisky in international markets.
Answered by Nigel Huddleston - Financial Secretary (HM Treasury)
This Government is supporting Scotch Whisky. We have provided a series of cuts and freezes to alcohol duties in the past decade. The most recent alcohol duty freeze from Autumn Budget 2021, including the extension to 1 August 2023, represented a total tax cut of £2.7 billion over the next four years.
The Government is seeking improvement in market access, through negotiating ambitious Free Trade Agreements, including our recent accession to the CPTPP, and with other trade partners. We are also seeking to reduce non-tariff barriers through conversations with various other partners globally.
Asked by: Alistair Carmichael (Liberal Democrat - Orkney and Shetland)
Question to the HM Treasury:
To ask the Chancellor of the Exchequer, what assessment he has made of the potential impact of the increase in alcohol duty on (a) economic growth and (b) job creation within the Scotch Whisky industry.
Answered by Gareth Davies - Exchequer Secretary (HM Treasury)
The potential impacts of the recent changes to alcohol duty rates were published at Spring Budget in HMRC’s Tax Information and Impact Note and can be found online: https://www.gov.uk/government/publications/changes-to-alcohol-duty-rates/alcohol-duty-rate-changes#summary-of-impacts.
This Government is supporting Scotch Whisky. We have provided a series of cuts and freezes to alcohol duties in the past decade. Before Spring Budget 2023, the spirits industry has benefitted from cuts or freezes to spirits duty at eight out of the last nine fiscal events, since the end of the duty escalator for spirits in 2013. The most recent alcohol duty freeze from Autumn Budget 2021, including the extension to 1 August 2023, represented a total tax cut of £2.7 billion over the next four years.
We have also undertaken the biggest reform of alcohol duties in 140 years and moved all alcohol products to being taxed based on their strength, narrowing the gap between spirits and still wine.
Further, we have removed punitive tariffs on Scotch Whisky imposed on the US market and are committed to protecting the interests of Scotch Whisky in trading agreements, ensuring that they face lower tariffs for export, and that the unique characteristics and global reputation of Scotch is protected, as demonstrated recently in our free trade agreements with Australia and New Zealand, and the CPTPP.
Asked by: Ian Murray (Labour - Edinburgh South)
Question to the HM Treasury:
To ask the Chancellor of the Exchequer ,what assessment he has made of the potential impact of the rise in alcohol duty on the (a) growth and (b) job creation prospects of the Scotch whisky industry.
Answered by Gareth Davies - Exchequer Secretary (HM Treasury)
The potential impacts of the recent changes to alcohol duty rates were published at Spring Budget in HMRC’s Tax Information and Impact Note and can be found online (https://www.gov.uk/government/publications/changes-to-alcohol-duty-rates/alcohol-duty-rate-changes#summary-of-impacts).
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: David Duguid (Conservative - Banff and Buchan)
Question to the HM Treasury:
To ask the Chancellor of the Exchequer, what plans he has to freeze or lower excise duties on whisky.
Answered by Helen Whately - Minister of State (Department of Health and Social Care)
As announced at Autumn Budget 2021, the duty rates on beer, cider, wine and spirits will be frozen for another year, saving consumers £3 billion over the next five years and supporting the hospitality industry and its suppliers as they recover from the pandemic. Due to the continued freeze on alcohol duty, Scotch whisky is also facing the lowest real-terms tax rate since 1918.
Asked by: Brendan O'Hara (Scottish National Party - Argyll and Bute)
Question to the HM Treasury:
To ask the Chancellor of the Exchequer, what recent assessment he has made of the potential effect of a differential duty rate on administration costs for (a) producers and (b) retailers of Scotch whisky.
Answered by Kemi Badenoch - President of the Board of Trade
The Treasury is considering the merits of differentiating products based on the place of retail as part of its alcohol duty review. Officials are working closely with HMRC to assess the practical implications of potential options and the Treasury will provide further updates in due course.
Asked by: Alan Brown (Scottish National Party - Kilmarnock and Loudoun)
Question to the HM Treasury:
To ask Mr Chancellor of the Exchequer, when he last met the hon. Member for Moray to discuss duty rates on Scotch Whisky.
Answered by Andrew Jones
Government ministers regularly meet with Members of Parliament to discuss policy issues.
Asked by: Alan Brown (Scottish National Party - Kilmarnock and Loudoun)
Question to the HM Treasury:
To ask Mr Chancellor of the Exchequer, when he last met the hon. Member for Gordon to discuss duty rates on Scotch Whisky.
Answered by Andrew Jones
Government ministers regularly meet with Members of Parliament to discuss policy issues.
Asked by: Alan Brown (Scottish National Party - Kilmarnock and Loudoun)
Question to the HM Treasury:
To ask Mr Chancellor of the Exchequer, when he last met the hon. Member for Aberdeenshire and West Kincardine to discuss duty rates on Scotch Whisky.
Answered by Andrew Jones
Government ministers regularly meet with Members of Parliament to discuss policy issues.