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'Whisky sour' claim after Budget | 'Whisky sour' claim after Budget |
(about 6 hours later) | |
The chancellor has been accused of slipping a "whisky sour" into his pre-Budget report, with an 8% rise in the excise duty on spirits. | The chancellor has been accused of slipping a "whisky sour" into his pre-Budget report, with an 8% rise in the excise duty on spirits. |
The Scotch Whisky Association said, despite Alistair Darling's decision to cut VAT, the announcement would mean an extra 29p on an average 70cl bottle. | The Scotch Whisky Association said, despite Alistair Darling's decision to cut VAT, the announcement would mean an extra 29p on an average 70cl bottle. |
It said the move, announced in the footnotes to Mr Darling's speech, was "counter-productive". | It said the move, announced in the footnotes to Mr Darling's speech, was "counter-productive". |
Campbell Evans of the SWA said the rise was a "damaging blow" to the industry. | Campbell Evans of the SWA said the rise was a "damaging blow" to the industry. |
In his pre-Budget statement, the chancellor announced a rise which would see the duty on a bottle of whisky rise by 47p to £6.45. | In his pre-Budget statement, the chancellor announced a rise which would see the duty on a bottle of whisky rise by 47p to £6.45. |
A temporary reduction in VAT, down 2.5 percentage points for the next 13 months, will see this rise reduced. | A temporary reduction in VAT, down 2.5 percentage points for the next 13 months, will see this rise reduced. |
Actually when you look at the whisky industry, I have helped that industry for many many years Chancellor Alistair Darling In quotes: Pre-Budget reactionKeeping tabs on the cost of livingQ&A: the PBR and you | Actually when you look at the whisky industry, I have helped that industry for many many years Chancellor Alistair Darling In quotes: Pre-Budget reactionKeeping tabs on the cost of livingQ&A: the PBR and you |
Mr Evans told BBC Scotland: "This tax rise is likely to be permanent - the fall in VAT is only temporary. | Mr Evans told BBC Scotland: "This tax rise is likely to be permanent - the fall in VAT is only temporary. |
"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. | "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. |
"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 VAT. | The chancellor defended himself on BBC Radio Scotland. He said the duty rise had to be seen alongside the cut in 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." |
The duty increase was branded a "smash and grab raid" by SNP MP Angus Robertson, who said the increase was the biggest in nearly four decades. | |
Mr Robertson, who represents the malt whisky-producing Moray constituency, 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." |