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| Whisky duty rise 'to be revised' | |
| (about 2 hours later) | |
| The chancellor is revising his alcohol tax plans to prevent a big increase in the cost of whisky. | The chancellor is revising his alcohol tax plans to prevent a big increase in the cost of whisky. |
| Alistair Darling has ordered changes to the details of his pre-Budget report following an outcry from the industry. | Alistair Darling has ordered changes to the details of his pre-Budget report following an outcry from the industry. |
| The Scotch Whisky Association warned the average bottle of whisky would cost 29p more after the pre-Budget report. | The Scotch Whisky Association warned the average bottle of whisky would cost 29p more after the pre-Budget report. |
| Mr Darling said the increase in duty on sprits was only supposed to offset the cost of his cut in VAT. He has ordered Treasury officials to change the plans. | Mr Darling said the increase in duty on sprits was only supposed to offset the cost of his cut in VAT. He has ordered Treasury officials to change the plans. |
| BBC Scotland understands new legal documents will go before the UK parliament to amend the pre-Budget report and ensure the whisky industry is not hit for more tax. | BBC Scotland understands new legal documents will go before the UK parliament to amend the pre-Budget report and ensure the whisky industry is not hit for more tax. |
| In his pre-Budget statement, the chancellor announced an 8% rise in excise duty on spirits, which would see the tax on a bottle of whisky rise by 47p to £6.45. | In his pre-Budget statement, the chancellor announced an 8% rise in excise duty on spirits, which would see the tax on a bottle of whisky rise by 47p to £6.45. |
| It would be a huge blow to the chancellor's credibility if he is forced into a climbdown when the ink on the Pre-Budget Report is barely dry Angus RobertsonSNP MP A temporary reduction in VAT, down 2.5 percentage points for the next 13 months, would see this rise reduced to about 29p on an average 70cl bottle. | It would be a huge blow to the chancellor's credibility if he is forced into a climbdown when the ink on the Pre-Budget Report is barely dry Angus RobertsonSNP MP A temporary reduction in VAT, down 2.5 percentage points for the next 13 months, would see this rise reduced to about 29p on an average 70cl bottle. |
| This was on top of a 59p increase in March. | This was on top of a 59p increase in March. |
| The duty increase was branded a "smash and grab raid" by the SNP MP for Moray, Angus Robertson. | The duty increase was branded a "smash and grab raid" by the SNP MP for Moray, Angus Robertson. |
| He said the increase was the biggest in nearly four decades. | He said the increase was the biggest in nearly four decades. |
| Mr Darling insisted his intention was to keep alcohol taxation "broadly" the same, but while VAT was charged on price, duty was charged on alcohol content so there was not an exact match. | Mr Darling insisted his intention was to keep alcohol taxation "broadly" the same, but while VAT was charged on price, duty was charged on alcohol content so there was not an exact match. |
| He said: "When they see the detail they will see that broadly the effect of cutting VAT and changing the duty - one cancels out the other, because my intention is I don't want to raise any more or any less. | He said: "When they see the detail they will see that broadly the effect of cutting VAT and changing the duty - one cancels out the other, because my intention is I don't want to raise any more or any less. |
| "I just wanted to hold the taxation on alcohol steady and we'll be laying the necessary orders to do that." | "I just wanted to hold the taxation on alcohol steady and we'll be laying the necessary orders to do that." |
| Campbell Evans from the Scotch Whisky Association said he was "delighted" that the issue was being revisited. | |
| He said: "I'm sure this is an error that crept in and the government are taking quick steps to address that and the industry will welcome that very much." | |
| Mr Evans added that there needed to be a "fundamental look" at duty in the longer term. | |
| Mr Robertson said: "We need to see the detail of what Alistair Darling is proposing, but hopefully he is U-turning on this damaging tax hike on one of Scotland's key industries. | Mr Robertson said: "We need to see the detail of what Alistair Darling is proposing, but hopefully he is U-turning on this damaging tax hike on one of Scotland's key industries. |
| "It would be a huge blow to the chancellor's credibility if he is forced into a climbdown when the ink on the pre-Budget Report is barely dry, and it suggests that he didn't understand the impact of his own PBR measures on Scotland." | "It would be a huge blow to the chancellor's credibility if he is forced into a climbdown when the ink on the pre-Budget Report is barely dry, and it suggests that he didn't understand the impact of his own PBR measures on Scotland." |