Finance (No. 2) Bill

Gideon Amos Excerpts

Committee of the whole House
Tuesday 13th January 2026 Commons Chamber

[Dave Doogan]

With clause 86, the Treasury in Westminster continues to treat Scotland’s vital Scotch whisky sector as a cash cow, with duty rising again in line with inflation in the Budget. As the Scotch Whisky Association warned, the previous 3.65% increase to spirit duty reduced revenue by 7%, costing the Treasury £150 million, so it seems an opportune moment to remind the Minister that her ambition, and that of her colleagues, should be to increase tax receipts, not erode them.

Dewar’s, Blair Athol, Edradour and Glencadam—just some of the distilleries in my constituency of Angus and Perthshire Glens—are four of the many distilleries striving to deliver global excellence, all while being gouged year after year by the Treasury in London. Through the hiking of duty, for the third time in two years, in the November Budget, a sector that is already mitigating job losses, stalled investment and business closures will face substantial additional headwinds. If the Labour Government genuinely value industry in Scotland beyond the grasping hand of the Treasury, they should work with us to amend or remove clause 86. That would have been a lot easier if SNP amendment 30 had been selected for debate. Nevertheless I can but appeal to the Minister’s better and last-minute judgment on this matter.

A Scottish coalition of drinks, tourism and farming representatives warned in October that duty increases had already contributed to around 1,000 job losses, and claimed that duty can make up around 70% of the cost of a bottle of Scotch. That same coalition emphasised spirits’ outsized role in hospitality margins, as they represent a smaller share of sales but a larger slice of profits, meaning that duty uprating can squeeze already extremely fragile margins in venues, especially in Scotland’s towns and rural areas where footfall is thinner.

I cannot emphasise enough to the Minister that this tax rise could be the final nail in the coffin for many hospitality businesses that are already on the margins of solvency, especially those in rural settings, such as my constituency and those of many other hon. Members. I do not hold with banning Labour MPs from pubs, because pubs are about being in the company of people from all walks of life. If people wish to select the company that they keep, they can do that in their own house. In a public house, we convene with the whole community and visitors alike—that is the magic of it.

[Gideon Amos (Taunton and Wellington) (LD)]

The hon. Gentleman is making a strong case for the whisky industry. Does he recognise that the cider industry in my part of the world in Somerset is deserving of good treatment because of its support for agriculture? It used to benefit from a duty of 40% that of the wider beer and drinks industry, but that has crept up. The average is now about 75%, and the duty on some classes of cider is now more than the duty on beer. Does he accept that that differential should be restored to support agriculture?