'Horrible blow':- Scotch Whisky Association responds to 10% duty rise in budget
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The Scotch Whisky Association has slammed the decision by the Chancellor to raise duty by 10.1%.
The association says it is one of the largest tax hikes in recent decades, and will further increase the competitive disadvantage faced by spirits.
In addition the SWA states the UK government has gone against its own pledge to support the industry
The rise means that of the £15.22 average price of a bottle, £11.40 is collected in taxation through duty and VAT.
Mark Kent, the SWA's chief executive, said: "This is an historic blow to the Scotch whisky industry.
"The largest tax increase for decades means that 75% of the average priced bottle of Scotch Whisky will be collected in tax, reducing already tight margins for an industry which employs tens of thousands of people and invests hundreds of millions annually across the UK."
Prior to today's budget, the SWA had called on the UK government to continue the freeze it had announced back in December.
Mr Kent continued: "We have been clear that increasing duty would be the wrong decision at the wrong time, so it is deeply disappointing that one of Scotland’s largest and longest-standing industries has been treated in this way.
"The industry continues to grapple with significant domestic headwinds, including the soaring cost of energy, intense pressure on the hospitality sector, and increasing regulatory burdens like the Deposit Return Scheme.
"This tax hike just adds to the pressures on the sector and breaks the UK government’s commitment to support Scotch.
"Scotch whisky has consistently delivered for the UK economy when given stability and certainty through duty freezes, enabling the industry to reinvest in job creation and growth across the country.
"The Chancellor has chosen to ignore the evidence.
"We call on all MPs to reject this unjustifiable tax hike in the Finance Bill and clearly demonstrate their support for the Scotch whisky industry."
