Wick's Old Pulteney distillery welcomes this week's Budget
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The Old Pulteney distillery in Wick says it is "cheered" by this week's Budget announcement of an alcohol duty freeze.
In the Budget, the Chancellor announced a duty freeze across all four alcohol categories. The duty rate on spirits remains at the current level of £31.64 per litre of pure alcohol, meaning that of the £15.63 average price of a bottle of Scotch Whisky, £11.40 is collected in taxation through duty and VAT – a tax burden of 73 percent.
Speaking just after the Budget announcement on Wednesday, a spokesperson for International Beverage/Pulteney Distillery said: "In alignment with the Scotch Whisky Association's comments, we're cheered by the announcement in today's Budget of an extension to the alcohol duty freeze.
"The current economic climate continues to present the whisky sector with a number of challenges, at a time when we are rolling out ambitious global growth plans for our premium spirits brands – including our Wick-based flagship single malt whisky, Old Pulteney. Any support that will benefit our business and the wider industry is therefore most welcome."
The Scotch Whisky Association (SWA) welcomed Wednesday’s alcohol duty freeze, saying that the decision by the Chancellor to extend the duty freeze until February 2025 shows he has recognised that a rise in duty would be "detrimental to the Scotch whisky industry and its supply chain, consumers and the wider economy" at a time when the UK is still struggling to bring inflation down.
An SWA spokesperson said after the Budget announcement: "With confirmation that duty will not rise further in August, the Chancellor recognised that supporting Scotch whisky boosts growth, increases revenue, and backs our iconic hospitality sector.
"While today’s announcement is a positive step, there continue to be great inequities when it comes to alcohol taxation in the UK. Scotch Whisky and spirits remain the highest taxed alcohol category in the UK.
"Longer term action is still needed to address the high tax burden on Scotch whisky, which is taxed at a higher rate per unit of alcohol than wine, beer and cider, and faces the highest spirits duty rate among G7 nations, despite being a home-grown success story, made in Scotland and employing 67,000 people across the UK.
"The industry is also unable to access tax breaks available to other sectors through the so-called ‘Brexit Pubs Guarantee’ and small producer relief."
Jamie Stone, MP for Caithness, Sutherland and Easter Ross, said: "It is good that the Chancellor has continued an alcohol duty freeze.
"Whisky distilleries in my constituency will be pleased to hear this. That being said, over the past year we have seen the Scottish Government attempt and abandon the Deposit Return Scheme and the UK Government implement a very well hidden rise in alcohol duty. All things considered, I would hazard a guess that the whisky industry might just welcome the fresh initiatives that could come with new Governments in both Edinburgh and Westminster."
Trudy Morris, chief executive of Caithness Chamber of Commerce, said: “In what will almost certainly be the last Budget before a general election, the Chancellor’s statement has set out his ambitions for growth, there are some positive indications for the business community, but the narrative remains unchanged.
"Businesses across the country continue to face challenges, spiralling costs, inflation, increased interest rates, and labour shortages. Unfortunately, this Budget doesn't address or alleviate the pressures felt across sectors, hindering progress and leaving businesses struggling."
