Seamus Logan
Main Page: Seamus Logan (Scottish National Party - Aberdeenshire North and Moray East)Department Debates - View all Seamus Logan's debates with the HM Treasury
(1 day, 15 hours ago)
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Seamus Logan (Aberdeenshire North and Moray East) (SNP)
It is a pleasure to serve under you, Mr Turner. I thank the hon. Member for Farnham and Bordon (Gregory Stafford) for securing this important debate. I was delighted that he broadened his comments beyond the wine industry because, of course, the lessons we can learn from the whisky industry will apply to the burgeoning wine industry. I also acknowledge the contribution from the hon. Member for Edinburgh South West (Dr Arthur). I agree with many of his comments about the health implications, but I also acknowledge, for once, a Scottish Labour MP praising the Scottish Government rather than criticising them.
The impact of alcohol duty is being felt far beyond the UK wine sector. It is critically affecting the nation’s biggest food and drink export: Scotch whisky. Despite its proven value to the economy—it supports more than 66,000 jobs across the country and had an export value of £5.4 billion last year—the industry now stands under a mounting threat that has been created by current Government policy.
In just two years, Scotch whisky has faced a 14% increase in duty, meaning that 70% of the average cost of a bottle of whisky represents tax. On top of that, producers are under immense pressure from other rising input costs, higher employment expenses and global market pressures, including damaging US tariffs that threaten stability and market share. Despite that, the expected revenues from duty increases have perversely failed to materialise. We know that the Government want to put growth at the heart of their strategy, but last year’s falling revenues show that excessive taxation is hurting both the industry and the Treasury. That also applies to the growing wine sector in this country. I expect that is partly to do with climate change, although I do not expect that my constituency in the north of Aberdeenshire will see any vineyards in the near future.
The Scotch Whisky Association has rightly described the current excise duty system as broken. It is now up to the Chancellor to create a stable and supportive environment for the industry by freezing excise duty. With more than 1,000 jobs lost since the last Budget, it is time for the Government to recognise the counterproductive nature of this policy and set it right in the upcoming autumn Budget.
Significant progress is being made in Scotland, as discussions between the First Minister and President Trump during his state visit highlighted the potential for a trade deal that would strengthen ties between the US whiskey and Scotch whisky industries. The Chancellor must now show the same commitment by prioritising the Scotch whisky sector and recognising that supporting its growth means maintaining the duty freeze to allow for this world-renowned industry, and hopefully the wine sector, to thrive.