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'Whisky sour' claim after Budget 'Whisky sour' claim after Budget
(20 minutes later)
The chancellor is being accused of slipping a "whisky sour" into his pre-Budget report.The chancellor is being accused of slipping a "whisky sour" into his pre-Budget report.
The Scotch Whisky Association said the announcement of an extra 29p, or 8%, on a 70cl bottle was a damaging blow to the industry in the current market. The Scotch Whisky Association said the announcement of an extra 29p on a 70cl bottle was a damaging blow to the industry in the current market.
It said the move, announced in the footnotes to Alistair Darling's speech, was "counter-productive".It said the move, announced in the footnotes to Alistair Darling's speech, was "counter-productive".
Campbell Evans of the SWA said: "This tax rise is likely to be permanent - the fall in VAT is only temporary."Campbell Evans of the SWA said: "This tax rise is likely to be permanent - the fall in VAT is only temporary."
He told BBC Radio Scotland: "The high level of excise duty that applies on spirits means the rise will be 29p on a bottle of Scotch - that's a 4% rise, and they have failed to understand that this measure has a disproportionate affect on Scotch whisky compared to other sectors.He told BBC Radio Scotland: "The high level of excise duty that applies on spirits means the rise will be 29p on a bottle of Scotch - that's a 4% rise, and they have failed to understand that this measure has a disproportionate affect on Scotch whisky compared to other sectors.
'Buried deep''Buried deep'
"The treasury's own model shows that if they put tax up on spirits they will see falling revenue. This measure was to try and keep revenues up - they're already losing money. It's not got any logic or any sense.""The treasury's own model shows that if they put tax up on spirits they will see falling revenue. This measure was to try and keep revenues up - they're already losing money. It's not got any logic or any sense."
The chancellor defended himself on BBC Radio Scotland. He said the duty rise had to be seen alongside the cut in 2.5% VAT.The chancellor defended himself on BBC Radio Scotland. He said the duty rise had to be seen alongside the cut in 2.5% VAT.
He said: "I've not been able to pass on the VAT reduction in relation to alcohol, but what I've done is I have had a compensatory increase in the duty.He said: "I've not been able to pass on the VAT reduction in relation to alcohol, but what I've done is I have had a compensatory increase in the duty.
"Actually when you look at the whisky industry, I have helped that industry for many many years - I've got to balance the books - at the end of the day you've got pay for it and people understand that.""Actually when you look at the whisky industry, I have helped that industry for many many years - I've got to balance the books - at the end of the day you've got pay for it and people understand that."
But the duty increase was attacked by SNP MP Angus Robertson as a "smash and grab raid".But the duty increase was attacked by SNP MP Angus Robertson as a "smash and grab raid".
Mr Robertson, MP for Moray, said: "The chancellor did not even have the decency to specifically mention his tax increase on the whisky industry.Mr Robertson, MP for Moray, said: "The chancellor did not even have the decency to specifically mention his tax increase on the whisky industry.
"The bad news was buried deep in the pre-budget report.""The bad news was buried deep in the pre-budget report."
He added: "It is totally unacceptable that this vital industry should be a casualty to Alistair Darling's desperate attempts to resuscitate the UK economy."He added: "It is totally unacceptable that this vital industry should be a casualty to Alistair Darling's desperate attempts to resuscitate the UK economy."