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CASTLE MALTING NEWS in partnership with www.e-malt.com Italian
24 January, 2022



Wisky news UK: Distillers urge Chancellor to rethink alcohol tax plans

Alcohol tax reforms that favour lower strength drinks break a Conservative election pledge to help the Scotch whisky industry, nearly 30 distilleries have warned Rishi Sunak, iNews reported on January 24.

The Chancellor was urged to “think again” on his autumn Budget plans to slash taxes on draught beer and cider, sparkling wine and other lower-strength products as part of an overhaul of alcohol duty.

The Scotch whisky distillers said the measures would “penalise responsible consumers” who want to drink spirits, despite there being “more alcohol in a pint of beer or cider than in a Scotch and soda or a G&T”.

In a letter seen by i, they said the reforms fail to deliver on the 2019 Tory manifesto pledge to ensure the alcohol duty review supported British drink producers, specifically mentioning Scotch whisky as a “national export that supports 42,000 jobs” and suggesting it was overtaxed.

With the support of the Scotch Whisky Association, the distilleries said: “The Government’s proposals not only fail to deliver that commitment but will also not meet the Chancellor’s objective of creating a simpler, fairer and healthier system.

“Beer and cider drinkers will stand beside people in a pub enjoying a spirits-based cocktail – with spirits paying a premium on drinks which contain less alcohol.

“Unless the Government revises its plans, it will penalise responsible consumers.

“It will not tackle the important issue of alcohol misuse, which needs a more targeted approach. And it will fail to meet the Prime Minister’s manifesto commitment to supporting Scottish businesses and a world-leading industry.

“The Government needs to think again and deliver a tax system which, like the UK’s consumption guidelines, does not discriminate between alcohol categories.”

A Treasury spokesman said: “At the Budget we overhauled the UK’s outdated alcohol duty rules to undertake the biggest simplification for over 140 years, adopting a common-sense approach whereby drinks will be taxed in accordance to their strength, helping to tackle problems caused by cheap high-strength drinks.

“We also froze duties on spirits for another year, which means Scotch whisky is facing the lowest real-terms tax rate since 1918, helping to support jobs and businesses within the industry – and alongside freezes to the rates on beer, cider and wine, saves consumers £3bn over the next five years.”





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