Three of every four pounds made to Treasury

MORAY'S politicians want to see the area's biggest industry expand on the global stage.

However, the parties of Douglas Ross MP and Richard Lochhead MSP differ on how this can be achieved while the Tory UK Government imposes a tax rate of 74 per cent in excise and VAT.

During Scotland Office Questions, Conservative and Unionist, Mr Ross, highlighted a recent report that showed the contribution of the Scotch whisky industry to the UK economy had grown by 10 per cent since 2016 to £5.5 billion.

He said: "Moray is home to the highest number of whisky distilleries this is great news for the area. I have worked hard to ensure the freeze on duty was maintained but we need to take a more long-term look at the way Scotch is taxed. The Scottish Secretary of State David Mundell MP agreed that the government will look at alternative taxation proposals.

"We have seen the positive result of previous freezes in duty which has allowed the industry to invest more than £500m in production, distribution, marketing and tourism over the last five years. If we continue to support this iconic product, the industry will continue to invest in communities across Scotland."

Scotch Whisky Association director of strategy and communications, Graeme Littlejohn confirmed the duty freeze over the last two years has been beneficial to the economy through the revenue generated to help fund vital public services.

He said: "Revenue from spirits have grown by more than 11 per cent in 2018/19, rather than the three per cent forecast by HM Treasury. But there is more to be done. £3 in every £4 spent on the average priced bottle of Scotch in the UK is currently collected in tax and the industry will continue to campaign for fairer treatment of Scotland’s national drink."

Meanwhile, the SNP's Mr Lochhead also wants to see "fairer taxes" for the industry during a period that marks the post-war record for the number of operating distilleries.

He said: "The SNP has long campaigned for our whisky sector to be treated fairly by the UK Government, indeed our MP’s have been calling for this since the Conservative Government came into power in 2010. In addition to fairer taxes for the industry, our MP should also be putting pressure on his party to finally take steps to ensure that more of the revenues raised by whisky taxes are invested back in the communities that are generating billions of pounds every year for the UK Treasury.

"Brexit is the biggest concern facing the local sector at the moment and the UK Government cannot allow our departure from the EU to undermine the global success of the sector and would undoubtedly be a real threat to our local economy and to jobs in the area."