Scottish hospitality coalition urges chancellor to protect whisky industry
A coalition of drinks, tourism and farming bodies has urged the chancellor to protect the Scottish whisky industry from a steeper sales slump and further job losses by freezing spirits duty in her budget next month.The grouping, which includes the Scottish arms of the National Farmers’ Union, the Institute of Directors and UKHospitality, has written to Rachel Reeves to argue that a freeze in duty would be a “strategic investment” that could increase tax revenues.They said recent rises in spirits duty had taken the overall tax paid on the average bottle of whisky to at least £12, or 70% of the retail price, contributing to about 1,000 redundancies in whisky production since last year’s budget, when spirits duty rose.“The current duty regime, combined with wider economic headwinds, is placing significant strain on both producers and venues,” the joint letter said.“Some businesses are halting investment or looking abroad, while others are being forced to cut jobs.
For many of the UK’s most iconic products, this is an alarming trend.”The signatories, which included the Scottish Grocers’ Federation, the Night Time Industries Association and Scottish Chambers of Commerce, said they represented thousands of bars, restaurants and hotels, as well the farmers who grow the barley used in whisky production.They argue the higher duty on spirits, including British-made products such as vodka and gin, has a disproportionate impact on bars and clubs.They calculate that spirits sales generate 38% of the hospitality sector’s profits, despite being only 15% of their sales by units of alcohol.Data from International Wine and Spirit Research found whisky sales in the UK fell by 4.
3m bottles in 2024 compared with 2023.Their appeal to the chancellor is designed to bolster a campaign by the Scotch Whisky Association (SWA), the sector’s trade body, for a freeze on the duty until 2029 – a proposal that would reduce the Treasury’s options in future.The SWA said there was evidence the Treasury’s approach to spirits duty was misguided.In its submission to the Treasury in advance of the 26 November budget, it said the 14% duty increase over the last two years had backfired.In 2023, the Treasury had forecast revenues from spirits duty would increase by 18% – however, they have increased by only 1.
5% since then.Other official forecasts of 38% growth in duty receipts “bears no relation to the real world and risks undermining further confidence in HM Treasury modelling”, it said.The industry bodies argue that inflation, increasing wholesale prices and staff costs, and falling consumer confidence add to an increasingly difficult economic picture.The UK’s spirits duties are 97% higher, the SWA said, than the EU average.Liz Cameron, the director of the Scottish Chambers of Commerce, said: “A duty freeze is not a handout.
It is an investment in British business, British exports, and British jobs – and a chance to back one of the UK’s most successful and globally recognised industries.”Andrew Connon, the president of NFU Scotland, said: “Quality cereals grown here in Scotland are the foundation of a hugely valuable supply chain – one that runs from grain to glass and delivers skilled jobs, investment and economic growth.”The Treasury said the chancellor had been clear she needed to balance public spending with supporting growth, but would not comment on her tax plans.“Our distilleries are vital to Britain’s economy, so we’re making it easier for them to thrive: no export duty, lower licensing fees, reduced tariffs, and a cap on corporation tax,” a spokesperson said.The Treasury did not comment, however, on the pressures facing hospitality and farmers.
Water firms in England could face harsher sewage fines under new Environment Agency powers
Water companies in England could face more, and automatic, fines for sewage dumping under new Environment Agency powers.The government is consulting on allowing the regulator to use a lower, civil, standard of proof instead of the higher criminal standard, for minor to moderate environmental offences.Other measures under consultation include setting a cap at either £350,000 or £500,000 for penalties issued to the civil standard, introducing new automatic penalties – like a speeding ticket – for specific and obvious breaches without the need for lengthy investigations, and setting a value of either £10,000, £15,000 or £20,000 for the new automatic penalty.Currently, investigations into pollution can take years and fewer than 1% have resulted in a prosecution.Regulators have been forced to be lenient to water companies which have been fined for illegally dumping sewage but are in dire financial straits
Gold on track for biggest one-day fall since 2020; BoE governor warns over private credit risks - as it happened
Back in the precious metals market, gold is on track for its biggest one-day fall in over a year.Bullion has dropped by over 4% so far today to $4,175 per ounce, as a blistering rally that reached a series of fresh record highs fades.That would be its biggest one-day fall since 9 November 2020, the day when Pfizer and BioNTech announced that their Covid-19 vaccine was 90% effective in trials, triggering a surge into shares.Gold has been a traditional safe-haven away from risky assets, and has also benefited from the ‘debasement trade’ where investors move out of fiat currencies and into harder assets.Daniela Sabin Hathorn, senior market analyst at capital
ChatGPT Atlas: OpenAI launches web browser centered around its chatbot
OpenAI on Tuesday launched an AI-powered web browser built around its marquee chatbot.“Meet our new browser—ChatGPT Atlas,” a tweet from the company read.The browser is designed to provide a more personalized web experience and includes a ChatGPT sidebar that enables users to asks questions about or engage with various aspects of each website they visit, as demonstrated in a video posted alongside the announcement. Atlas is now available globally on Apple’s Mac operating system and will soon be made available on Windows, iOS and Android, according to OpenAI’s announcement.Meet our new browser—ChatGPT Atlas
‘Significant exposure’: Amazon Web Services outage exposed UK state’s £1.7bn reliance on tech giant
Amazon chief executive Andy Jassy beamed as he met Keir Starmer in Downing Street’s garden to announce £40bn of UK investments in June. Starmer was equally effusive, gushing: “This deal shows that our plan for change is working –bringing in investment, driving growth, and putting more money in people’s pockets.”Four months later, and the tech company was left scrambling to fix a devastating global outage on Monday that left thousands of businesses in limbo – and shed light on the UK government’s reliance on its cloud computing business, Amazon Web Services (AWS).Figures compiled for the Guardian hint at the British state’s increasing reliance on the services of the giant US internet group, which has also drawn criticism from unions and politicians about working conditions within its logistics and internet retailing business.AWS has won 189 UK government contracts worth £1
Jets owner outlines hopes for team: ‘If we can complete a pass, it would look good’
New York Jets owner Woody Johnson has outlined modest ambitions for his winless team as he backed his head coach, Aaron Glenn.The Jets are 0-7 this season and have been awful in almost every department. Speaking about the team’s play on Tuesday, Johnson said: “If we can just complete a pass, it would look good.”However, he was quick to praise Glenn, who is in his first season as an NFL head coach. “I do believe in Aaron,” Johnson said
Amy Jones and England cannot avoid Ashes’ shadow over Australia rematch
Amy Jones has claimed that January’s Ashes whitewash “hasn’t been a topic of discussion” before Wednesday’s World Cup clash between England and Australia. If you believe that, you will believe anything.Both teams have qualified for the semi-finals, so it could be argued that little will be at stake in Indore. That would be wrong. First, given the run of results in this World Cup, these sides are almost certain to finish first and second and therefore avoid a semi-final against each other – which means this game could well be a precursor to the final in Navi Mumbai on 2 November
I can’t stop watching videos of people discovering Beds Are Burning by Midnight Oil. Send help
‘London could 100% compete with Cannes’: Aids charity UK gala debut honours Tracey Emin
Champagne, celebs and artefacts: British Museum hosts first lavish ‘pink ball’ fundraiser
My cultural awakening: ‘The Specials helped me to stop fixating on death’
From After the Hunt to the Last Dinner Party: your complete entertainment guide to the week ahead
The Guide #213: Should we mourn the demise of TV channels?