CHANCELLOR Philip Hammond should use the forthcoming Autumn Budget to rule out a tax hike on scotch whisky or risk jeopardising one of the UK’s most successful exports, the SNP warned today.

Nationalist MP Brendan O’Hara, who chairs Westminster’s all-party parliamentary group on scotch whisky, echoed industry concerns, saying it was vital that businesses and sectors were protected and not burdened with a counterproductive and unnecessary tax hike.

He said: “Scotch whisky is one of Scotland’s major assets and a global success story. At a time of continued Brexit uncertainty and instability, we cannot risk or undermine our whisky industry by increasing the tax liability on our producers who are already contributing so much.

“Despite the Treasury predicting lost revenues of £225 million from the November duty freeze, they actually rose by £113m. By contrast, when the Treasury increased revenues the previous March by 3.9per cent, revenues dropped by 7.2 per cent. Scotch whisky cannot be forced to bankroll the UK’s failing economic strategy,” declared the Argyll and Bute MP.

“For too long the Treasury has viewed the industry as a ‘cash cow’, as evidenced by last year’s counterproductive duty hike. That approach must come to an end and I call on the Chancellor to rule out unnecessary tax hikes and instead take heed of the economic reality and retain the duty freeze on scotch whisky to ensure that this vital Scottish industry continues to grow,” he added.

The SNP stressed that scotch whisky was responsible for approximately a fifth of UK food and drink exports and recently reported record numbers of visitors to distilleries and tourist centres. The industry supported more than 40,000 jobs directly and through its supply chain, it noted.

The Scotch Whisky Association – the sector’s trade body – has already said that a continued freeze would “not only deliver greater revenue for the Treasury but also help to support an industry that has invested more than £500m in capital projects over the last five years”.

The Budget date is not yet known and it is thought Mr Hammond is waiting to name a date until there is clarity over the success or otherwise of the Brexit talks. This means that the economic statement might not come until the end of November or the beginning of December.