I will call Graham Leadbitter to move the motion. Unusually, two further Members will make a contribution in this half-hour debate. There will not be an opportunity for the Member in charge to sum up at the end.
That this House has considered Government support for the Scotch whisky industry.
It is a pleasure to serve under your chairship, Dame Siobhain. Today I seek to address the critical role of the Scotch whisky industry in the UK economy and to outline the essential support that it requires from the UK Government.
Scotch whisky is more than just a drink; it is a cultural and economic asset that is enjoyed around the world. We all share the desire to ensure that it is enjoyed responsibly and sustainably for generations to come. Each bottle shipped from Scotland to every corner of the world leaves behind a measurable impact on our economy. The numbers speak for themselves. The industry provides £7.1 billion in gross value added to the UK economy. It supports 41,000 jobs across Scotland and more than 25,000 more jobs across the UK. Scotch whisky accounts for 74% of Scottish food and drink exports and 22% of UK food and drink exports.
I thank the hon. Member for securing this debate. He is right to highlight the importance of Scotch whisky in his constituency. In my constituency, the Hinch distillery is becoming a globally recognised, award-winning whiskey brand. These home distilleries provide for each and every person’s constituency, including the hon. Gentleman’s, mine and others. They grow the local economy and should receive support to further their success from the Government here at Westminster.
I thank the hon. Member for securing this debate. I do not want this to become a promotion for every drink across these islands, but the challenges that Irish and Scottish whisky face are also faced by Baileys. Maybe not many people know this, but 70% of the world’s Baileys is produced in a factory in Mallusk in my constituency. It is exported to 100 countries worldwide, providing good jobs in the economy. I know the hon. Member enjoys a glass as well.
I do not know whether I need to comment on how many different types of drink I consume. Returning to the matters at hand, exports are valued at more than £5 billion, with 43 bottles of Scotch whisky exported every second.
The hon. Gentleman is speaking about exports. We know the damage done to the Scotch whisky industry when we last suffered tariffs as a consequence of US trade policy—nothing to do with President Trump, it has to be said, but due to an old trade dispute. Surely this is the point at which the Government should be thinking ahead and putting a strategy in place to help the industry should, heaven forfend, we find ourselves back to that place as a consequence of the new regime in the White House?
I thank the right hon. Gentleman for making that point, which I will come on to a little bit later in my speech.
In 2022, Scotch whisky distilleries attracted 2 million visitors, making them the most popular tourist attraction in Scotland. Between 2018 and 2022, the industry invested £2.1 billion in capital projects, with many more such projects in the pipeline as we speak.
Does my hon. Friend agree that it is perplexing to see the Prime Minister commit that he will
“back Scotch producers to the hilt”
—I believe those were his words—while enforcing the highest excise duty in the G7 on Scotch? Surely now is the time for the Prime Minister to back up his words with action.
I agree entirely with those sentiments. Again, I will touch on that issue shortly.
The success of the Scotch whisky industry relies on firm foundations and support. Support can take many forms, and I will endeavour to outline the key areas in which the UK Government can take positive and beneficial action. First, on trade, securing beneficial free trade agreements is absolutely paramount. For example, a free trade agreement with India that reduces the 150% tariff on Scotch whisky could generate up to £1 billion in additional exports over the next five years and create 1,200 jobs. We must also continue to strengthen our trade relationships with the US, recognising the significant investment that the Scotch whisky industry already brings to the US economy.
Does the hon. Member agree that the work undertaken by Ministers to open up new markets for Scotch whisky is vital, and that the new special status for Scotch whisky in Brazil is great news for the industry? Does he also agree that the InchDairnie distillery in my constituency should be supported in launching its new rye whisky brand, through consideration of the current legislation regarding labelling, which is vital, but is creating a barrier to its accessing the rapidly growing market for rye whisky?