Liberal Democrat MPs for the north and north-east have piled pressure on the Treasury by throwing their weight behind calls to freeze “unfair” whisky taxes.
With dozens of distilleries in their constituencies, three senior party figures joined forces with Labour and SNP members yesterday to demand the whisky duty escalator be axed.
Sir Malcolm Bruce, Sir Robert Smith and Alan Reid all spoke out during a Westminster debate, in a move which increased the chances of the UK Government taking action.
Their support puts pressure on their Cabinet colleagues – including fellow north Lib Dems Danny Alexander, the chief secretary to the Treasury, and Scottish Secretary Alistair Carmichael – to secure measures for the vital whisky industry at the Budget in March.
After hearing the remarks yesterday, a Treasury minister pledged that “serious consideration” would be given to the calls.
Excise duty and VAT make up 79% of the price of a bottle of Scotch, and the escalator automatically increases duty by 2% above inflation.
Gordon MP Sir Malcolm said: “The escalator should go, and we should make sure that our most successful industry is supported competitively at home and abroad.”
Mr Reid, whose Argyll and Bute constituency includes the whisky-producing island of Islay, said: “It is very unfair that whisky is taxed far higher than beer and wine.
“We must be about the only country in the world that taxes our own product higher than imported products like wine.”
Sir Robert, Lib Dem MP for West Aberdeenshire and Kincardine, warned about the message the levy was sending to foreign countries, saying: “It’s important to send the right signal to these markets and the Treasury needs to consider the impact it has on the importing countries.”
Brian Donohoe, Labour MP for Central Ayrshire, secured the debate as secretary of the all-party Scotch whisky group, and said: “Scotch whisky drinkers are being very heavily penalised as it stands just now.”
At the end of the debate, Angus Robertson, SNP MP for the Moray and Speyside whisky heartlands, asked: “Is the minister prepared to confirm that the government will actually listen to the views of the overwhelming majority of elected representatives in this chamber, and deliver in tax fairness or not?”
Nicky Morgan, economic secretary to the Treasury, responded: “I can give an assurance that I will give this very serious consideration in the run-up to the Budget, and I will discuss it with my colleagues in the Treasury, including my right honourable friend the chancellor of the exchequer.”