Reid opposes whisky duty increase (Dumfries Liberal Democrats)

Dumfries Liberal Democrats <tom@therussells.org.uk>

Reid opposes whisky duty increase

May 18, 2009 10:31 AM
Originally published by Scottish Liberal Democrats

Alan Reid, Liberal Democrat MP for Argyll & Bute, voted against the increase in alcohol duties in the Finance Bill.

Mr Reid told the House that the whisky industry supported 60,000 jobs in the UK, many of these in remote parts of the country where alternative employment would be hard to find. He said that the repeated rises in alcohol duty, well above the rate of inflation, were likely to have a devastating effect on employment in the industry.

He also argued for an end to the unfair treatment of whisky compared to beers and wines. He said,

"One illogical aspect of the present system is that spirits are taxed far more heavily per unit of alcohol that beers or wines. If alcohol were taxed on health grounds, surely the only logical way to tax it would be based on the units. The present Prime Minister, when he was Chancellor, had the policy of freezing the duty on spirits and allowing that on beers and wines to catch up. I am disappointed that that policy has not continued."

Both Labour and Tories argued in favour of the duty on whisky being higher than that on beers and wines. The duty increase was carried because Labour voted for it. All other parties voted against.