Scottish Whisky Industry Criticizes Alcohol Duty Hike

The Scotch Whisky industry is facing severe backlash after Chancellor Rachel Reeves announced an increase in alcohol duty for non-draught products, raising the minimum tax on a bottle of Scotch to over £12 for the first time. The Scotch Whisky Association (SWA) condemned the move as a 'hammer blow' that contradicts the Prime Minister's promise to support Scotch producers, stating the increase serves no economic purpose and will harm the Scottish economy. Critics argue this tax hike, compounded by a previous 10.1% increase last year, disproportionately affects Scotland's spirits industry, which produces 70% of the UK's spirits. The Chancellor's budget also includes a reduction in duty for draught products, further fueling claims of tax discrimination against Scotch whisky. Industry leaders, including Diageo's Nuno Teles, expressed disappointment, asserting that this move jeopardizes jobs and investments in Scotland. The situation has sparked calls for politicians to oppose the hike and protect the nation's drink.