Keir Starmer has been accused of betraying the Scotch whisky industry in the budget by drinks giant Diageo.

It comes after Chancellor Rachel Reeves cut tax on draught beer in a pub, but said the duty paid on spirits would increase in line with inflation.

Scottish distillers had been hoping for a tax cut and have complained that hundreds of small producers could close north of the border.

Diageo’s Great Britain Managing Director Nuno Teles said: “On the campaign trail, Keir Starmer pledged to ‘back the Scotch whisky industry to the hilt’.

“Instead, the Government has broken this promise and slammed even more duty on spirits. This betrayal will leave a bitter taste for drinkers and pubs, while jeopardising jobs and investment across Scotland.”

The firm, which owns many of Scotland’s most prominent whisky brands, has claimed Reeves’ decision will take the minimum tax burden on a bottle of Scotch whisky above £12 for the first time.

And it say that will leave the UK tax burden on spirits the highest out of any country in the G7.

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