![\"Sir-Keir-Starmer-at-whisky-disitillery\"](\"https:\/\/dailybusinessgroup.co.uk\/wp-content\/uploads\/2023\/11\/Sir-Keir-Starmer-at-whisky-disitillery.png\")
Whisky distillers have criticised a hike in duty which has come into effect just days after Sir Keir Starmer was hailing a tariff deal with China.<\/p>\n
A 3.66% rise in excise duty on alcohol came into effect yesterday, meaning the total tax on an average bottle of Scotch has risen from\u00a0\u00a310.58\u00a0in 2023 to\u00a0\u00a312.45.<\/p>\n
Mark Kent, chief executive of the Scotch Whisky Association, said this was a cumulative increase of\u00a018%\u00a0in less than three years. <\/p>\n
\u201cOur sector has warned that repeatedly raising excise duty leads to stifled growth, and we are seeing that\u00a0come to pass, not just for Scotch Whisky producers, but for the wider supply chain and hospitality sector,\u201d he said.<\/p>\n
\u201cContinually pushing up spirits duty also costs the public purse, as\u00a0evidenced\u00a0by the Office for Budget Responsibility downgrading its own spirits receipts forecast by over\u00a0\u00a3600m late last year.\u00a0<\/p>\n
\u201cDistillers need domestic support and stability to help weather the headwinds we are seeing in key global markets, and fair tax here at home is in the government\u2019s gift to deliver. <\/p>\n \u201cThis year\u2019s review of excise duty is an opportunity for the government to provide that stability, with a fair duty system that does not punish spirits producers but supports their ambitions for growth and investment.\u201d\u00a0<\/p>\n Sir Keir Starmer last week secured a cut in the tariff on whisky imposed by China from 10% to 5%, worth \u00a3250m over five years and effective from today. China is currently the\u00a0tenth largest market by value\u00a0for Scotch whisky exports.<\/p>\n However, distillers and other business leaders say they need to see action taken to tackle tax levels in the UK.<\/p>\n Charandeep\u00a0Singh, chief executive of the Scottish Chambers of Commerce, said:\u00a0\u201cThe success and prosperity of many sectors across Scotland\u2019s economy depend on that of the Scotch Whisky industry \u2014 from the farmers who grow the grain to the bars, pubs and restaurants who serve the finished product.\u201d <\/p>\n He said the rise in excise duty will increase costs for businesses across that supply chain, all of which are already under significant pressure.\u00a0<\/p>\n \u201cIt\u2019s\u00a0important that government listens to the concerns of the businesses behind Scotland\u2019s national drink and creates a domestic environment that supports, rather than limits, their ambitions for growth,\u201d he added.<\/p>\n Wendy Chamberlain, MP for\u00a0North East Fife\u00a0and chair of the Scotch Whisky All Party Parliamentary Group said:<\/strong>\u00a0\u201cIt\u2019s clear that today\u2019s rise in duty \u2013 the third in less than three years \u2013 doesn\u2019t just hit distillers, but the economies and communities across Scotland that they support through jobs, investment and tourism. <\/p>\n \u201cWith over 70% of UK spirits produced in Scotland, the spirits duty rise also disproportionately impacts businesses here, from the Central Belt to the Highlands and Islands. <\/p>\n \u201cIt\u2019s vital that the UK government uses this year\u2019s excise duty review as an opportunity to support Scotch Whisky producers with a fair and balanced tax system, which in turn will boost growth and prosperity for communities throughout Scotland.\u201d\u00a0\u00a0<\/p>\n Ian Palmer, founder of InchDairnie Distillery in Fife, chairman of InchDairnie Whisky Co, and SWA Council representative, said:?<\/strong>\u201cBusinesses like mine need fairness and breathing space here at home to be able to weather significant challenges in our international markets. <\/p>\n \u201cInvesting in expansion and employment for the long term requires stability right now, not crippling tax rises that go up indiscriminately every year, severely impacting our confidence and plans for the future. <\/p>\n \u201cDistillers need to know the government\u2019s domestic agenda is on their side, which will enable us to take full advantage of the international export opportunities on the horizon.\u201d\u00a0<\/p>\n \t <\/div>\n![\"Mark](\"https:\/\/dailybusinessgroup.co.uk\/wp-content\/uploads\/2022\/01\/Mark-Kent-.png\")