Moray MP Douglas Ross left "very disappointed" by 10 per cent hike on Scotch whisky duty as and MSP Richard Lochhead hits out at "betrayal"

MORAY MP Douglas Ross admitted he was "very disappointed" by the decision made by UK chancellor Jeremy Hunt to increase Scotch whisky duty by more than 10 per cent.

Scottish Whisky Association's chief executive Mark Kent described the news that 75 per cent of an average priced bottle of Scotch whisky will now be collected in tax as "an historic blow".

Mr Ross admitted his disappointment at the decision to raise duty by 10.1 per cent – which was slammed by Moray MSP Richard Lochhead, among others.

"I was left very disappointed by the chancellor’s decision to hike the duty on Scotch whisky," he said.

“That is a blow to the industry which is so vital for jobs and the local economy in Moray and I share their concerns over the impact it will have on them during the current climate.

“I made the case to continue with the freeze directly to the chancellor and other treasury ministers, but unfortunately the huge financial support the UK Government is providing during the cost-of-living crisis comes at a price, and they have been forced to raise some taxes.

“This budget sees alcohol duties largely going up across the board, not just whisky but I know the announcement is disappointing, particularly here in Moray where we are home to so many outstanding Scotch distilleries."

Moray's MSP Richard Lochhead described the tax hike as a "betrayal".

He said: "The whisky industry is hugely important to the Speyside and Moray economy and the chancellor has failed to back the industry by increasing tax on whisky.

"This is despite promising during the 2019 election campaign to ensure the tax system supports Scotch whisky. The average bottle will be now taxed at a staggering 75 per cent. What a betrayal."

Sarah Medcraf, chief executive of Moray Chamber of Commerce, said that the tax is "not reflective" of talks prior to the budget.

She said: "The budget was disappointing for our world-renowned whisky sector, with the highest tax hike since 1981 – a huge 10.1 per cent.

"Well over half of Scottish whisky is produced in Moray Speyside and this tax is bad news for the sector and not reflective of the discussions on a fairer tax."

Neil Alexander, leader of Moray Liberal Democrats, added: "The whisky industry is vital to Moray, and with the upcoming end to the alcohol duty freeze in August, every one of our home distilleries will have higher costs and face cut backs.

"The budget even mentioned reforming alcohol duty to create ‘tax bands based on volume’. This will hit our whisky trade even harder."