CHANCELLOR Rachel Reeves must freeze duty on Scotch whisky to save jobs and boost the economy, according to GMB Scotland.

GMB Scotland secretary Louise Gilmour has written to Ms Reeves as she prepares to present her second Budget next month, demanding that duty on Scotch be frozen until at least the end of this parliament – potentially until 2029.

Ms Gilmour wrote: “Vital steps can be taken now to back Scotch whisky amidst global trade uncertainty whilst still protecting public finances.

“A commitment to freeze excise duty throughout this Parliament will provide business confidence in a sector struggling under increased tariffs and taxation, while allowing the benefits of the government’s economic policies to reach our members on the shop floor.”

The industry faced a 10.1 per cent hike in duty under the Tories’ last Budget and an increase in line with the retail price index from Ms Reeves last year.

But according to the Scotch Whisky Association (SWA) the tax actually yielded hundreds of millions less for the Treasury, amid slowing overseas sales. 

Backing the GMB’s call, SWA chief executive Mark Kent, said: “A freeze on spirits duty will bolster the jobs supported by the Scotch Whisky industry and boost Treasury revenue too.

“A multi-year freeze on spirits duty would provide much-needed stability for Scottish and UK businesses and the communities that rely on the industry, allowing them to grow and invest at a time when all businesses are facing pressure.”

The Treasury said: “The Chancellor has been clear that at the Budget she will strike the right balance between making sure we have enough money to fund our public services and ensuring we can bring growth and investment to businesses.”