Daniel Zeichner

Daniel Zeichner

Labour — Cambridge

Speaking in the House of Commons on 12 February 2025

Debate

Support for the Scotch Whisky Industry

Contribution

I hear those concerns. We are addressing a whole range of financial issues across the economy, and we think this is a fair and balanced approach. To continue outlining some of the measures that we have taken to support the industry, we have announced measures to reduce business costs and encourage growth. We will be doing away with the alcohol duty stamp scheme from 1 May. About 3,500 spirits producers, bottlers and labellers will no longer need to comply with the duty stamp requirements, saving an estimated £6.5 million annually. We will also simplify the administration of alcohol duty, reducing burdens and supporting growth. From March 2025, HMRC’s arrangements for duty returns and payments will be reformed, supported by a new online service. Additionally, reform of the production approvals required by spirits producers means that many will no longer be required to operate separate excise warehousing facilities for the storage, bottling and labelling of their own products. The industry has always been innovative in sustainability practices. That is reflected in the strategy developed by the Scottish Whisky Association, supported by the UK Government as we strive to develop a more circular economy. The strategy involves a number of packaging reforms, such as the deposit return scheme and extended producer responsibility. We genuinely believe that this partnership working toward a common outcome will help us all to achieve wider sustainability goals. We are aware that some distilleries in Scotland have struggled in recent years with delays and limitations to connection with the national grid, creating a barrier to growing their businesses. Reducing electricity network connection timescales and expanding network capacity to connect and to power businesses are both top priorities for the Government. We are working closely with Ofgem and the National Energy System Operator to accelerate network connections. The newly announced mission control for clean power 2030, alongside planning reforms to speed up infrastructure development, will play a vital role in unlocking grid connection delays for Scotch whisky distilleries, especially those in rural areas. I thank the hon. Member for Moray West, Nairn and Strathspey again for securing this debate. In the contributions today, we have heard Members’ passion for this vital and important industry in Scotland and the wider United Kingdom. We have also demonstrated the strong support the UK Government are giving the Scottish whisky industry by listening to and acting on the industry’s concerns, and by working collaboratively toward common goals. Question put and agreed to.

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