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Alcohol Duty Hike Sparks Outcry from Scottish Whisky Industry

Chancellor Rachel Reeves' budget increases duty on non-draught alcohol, prompting backlash over economic impact on Scotch whisky producers.

  • The UK government announced an increase in alcohol duty on non-draught drinks, aligning with the RPI rate of inflation starting February 2025.
  • The Scotch Whisky Association criticized the duty hike, calling it a 'hammer blow' to the industry and a breach of promises to support Scottish producers.
  • Despite the duty increase on spirits and wine, the budget includes a 1.7% cut in duty on draught products, reducing the price of a pint in pubs by one penny.
  • Critics argue the duty hike could lead to further declines in Treasury revenue, citing last year's similar increase that resulted in a significant drop in whisky revenue.
  • The UK Spirits Alliance and other industry figures warn the changes could lead to more pub closures and job losses, while some advocate for encouraging more pub drinking to boost community engagement.
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