Scotch Whisky Excise Duty
Debate between Baroness Morgan of Cotes and Alan Reid(10 years, 3 months ago)
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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.
Mr Reid
I want to put it on the record that Islay, not Moray, is the heartland of the Scotch whisky industry.
We can all trade figures, but the point is that under the current duty escalator policy, the duty on spirits will rise in the next few years at a much greater rate than that on beers and will make the already unfair situation even more unfair.