The UK is committed to full, faithful, and timely implementation of the Windsor Framework, including the 'Not for EU' labelling requirements of the Northern Ireland Retail Movement Scheme. Defra continually reviews compliance with the Windsor Framework to ensure the UK meets its international obligations.

The Government is negotiating an SPS Agreement with the EU, the benefits of which will flow to movements between Great Britain and Northern Ireland. This depends on the UK showing itself to be a trusted partner by continuing to faithfully implement its existing Windsor Framework commitments.

What steps he plans to take to support distillers.

My hon. Friend knows that at this time of year, my heart is in Uist, and I wish I was there now sampling a gin cocktail from the Downpour distillery—my favourite of the nine distilleries he mentioned. We are determined to support energy-intensive industries such as his local distillers. The supercharger for British industry is being reviewed this year, and we are keen to hear from the whisky industry as we review that support. As he says, many distilleries are off-grid and heavily reliant on heating fuels, and are suffering from the Iran war. That is why we are considering the temporary suspension of tariffs on kerosene oil. The consultation on that ended a few days ago, and we will make a decision on it in due course.

Distilleries in my constituency—I count nine of them—overwhelmingly rely on kerosene heating oil to make their product. Since President Trump’s folly in Iran, they have seen costs rise by 18%. It is not just the distilleries; seaweed manufacturing, chemical processing at Callanish and the iconic Harris tweed industry all rely on kerosene heating oil to make their products. Domestic consumers in the islands are helped by generous support from the Government, but can the Minister outline what the UK Government can do to help these energy-reliant industries that keep hundreds of jobs in Na h-Eileanan an Iar keep on going?

I absolutely wish the hon. Member’s constituents all the best. It is entrepreneurial spirit like that that drives the economy forward. I will give one example of the support: there is a big extension of UK export finance so that such businesses can find new markets, because the best way to become a more resilient business is for them to open up and diversify their markets. I will gladly put his constituents in touch with people at UK Export Finance to discuss that.

Earlier this year in my constituency, the much-loved brand Slingsby Gin went into administration. A cocktail of different things added to the pressure on the business. Will the Minister wish the new owners of Slingsby Gin, Chris and Asma Williams, good luck in their new venture, and tell me what steps the Government are taking to support them going forward?

I thank my hon. Friend for raising this vital sector for island economies. Whisky exports were worth over £5.4 billion in 2025, supporting jobs and supply chains across Scotland. We are supporting distillers through UK Export Finance, DBT’s export support, trade promotion and direct engagement with the industry to help businesses, including small distilleries, to grow, invest and reach new markets.

Producers making spirits-based products below 8.5% alcohol by volume are already eligible to claim Small Producer Relief on products such as ready-to-drink cocktails. The 8.5% ABV limit ensures these reliefs are targeted at lower strength products. This is in line with the principle underpinning the alcohol duty system that stronger alcoholic products should pay more duty.

Small distilleries play an important role in the UK’s food and drink sector and the Government supports them through its wider SME offer. DBT provides access to the Business Growth Service, which brings together advice, guidance and support to help businesses grow, including the Business Support Service and local Growth Hubs. In addition, the British Business Bank supports access to finance, including through the Growth Guarantee Scheme, alongside online tools and programmes such as Help to Grow.

Alcohol duty is paid by producers, and is therefore not typically paid directly by pubs. Further, according to estimates derived from sales data collected on behalf of the Office for National Statistics, only around 15% of spirits are consumed on-trade.

At Autumn Budget 2025 the Chancellor confirmed that alcohol duty will be uprated on 1 February 2026 to maintain its current real-terms value.

Using HMRC’s published ready reckoner, freezing alcohol duty rates when inflation is 3.66% would cost the Exchequer around £400m a year. This ready reckoner can be found here:

www.gov.uk/government/statistics/direct-effects-of-illustrative-tax-changes/direct-effects-of-illustrative-tax-changes-bulletin-january-2025#change-in-various-duties.

Alcohol duty is paid by producers, and is therefore not typically paid directly by pubs. Further, according to estimates derived from sales data collected on behalf of the Office for National Statistics, only around 15% of spirits are consumed on-trade.

At Autumn Budget 2025 the Chancellor confirmed that alcohol duty will be uprated on 1 February 2026 to maintain its current real-terms value.

An assessment of the impacts of decisions taken by the Chancellor at each Budget is published within the relevant Tax Impact and Information Note (TIIN). The TIIN for the inflation-linked uprating announced at the most recent Budget is available here:

https://www.gov.uk/government/publications/alcohol-duty-rates-change/alcohol-duty-uprating#summary-of-impacts

There is significant variation in alcohol taxation policy amongst European countries. The World Health Organization recently published a comparison of alcohol taxes across the WHO European Region, which can be found here: https://www.who.int/europe/publications/i/item/9789289061940.

HMRC does not hold data on alcohol duty paid on alcohol sold in pubs.

Alcohol duty is paid by producers, and is therefore not typically paid directly by pubs. Further, according to estimates derived from sales data collected on behalf of the Office for National Statistics, only around 15% of spirits are consumed on-trade.

At Autumn Budget 2025 the Chancellor confirmed that alcohol duty will be uprated on 1 February 2026 to maintain its current real-terms value.

An assessment of the impacts of decisions taken by the Chancellor at each Budget is published within the relevant Tax Impact and Information Note (TIIN). The TIIN for the inflation-linked uprating announced at the most recent Budget is available here:

https://www.gov.uk/government/publications/alcohol-duty-rates-change/alcohol-duty-uprating#summary-of-impacts

There is significant variation in alcohol taxation policy amongst European countries. The World Health Organization recently published a comparison of alcohol taxes across the WHO European Region, which can be found here: https://www.who.int/europe/publications/i/item/9789289061940.

HMRC does not hold data on alcohol duty paid on alcohol sold in pubs.

Further, the United Kingdon has an international obligation under WTO rules to treat imported and domestic products fairly. A duty-based tax incentive that applied only to domestic spirits producers is likely to be inconsistent with these legal obligations.

To support spirits producers, the Government has:

• agreed a trade deal with India which will reduce tariffs on gin and whisky exports from 150% to 75% initially, and then 40% over time;
• ended the alcohol duty stamps scheme on 1 May 2025, reducing the administrative burden on spirit producers and importers, including Scotch Whisky distilleries;
• invested £5m in the Spirits Drink Verification Scheme (SDVS) to enable HMRC to cut the fees it charges producers for its verification service.

Treasury Ministers and officials have meetings with a wide variety of organisations in the public and private sectors as part of the process of policy development and delivery.

Details of ministerial and permanent secretary meetings with external organisations on departmental business are published on a quarterly basis and are available at: https://www.gov.uk/government/collections/hmt-ministers-meetings-hospitality-gifts-and-overseas-travel

Further, the United Kingdon has an international obligation under WTO rules to treat imported and domestic products fairly. A duty-based tax incentive that applied only to domestic spirits producers is likely to be inconsistent with these legal obligations.

To support spirits producers, the Government has:

• agreed a trade deal with India which will reduce tariffs on gin and whisky exports from 150% to 75% initially, and then 40% over time;
• ended the alcohol duty stamps scheme on 1 May 2025, reducing the administrative burden on spirit producers and importers, including Scotch Whisky distilleries;
• invested £5m in the Spirits Drink Verification Scheme (SDVS) to enable HMRC to cut the fees it charges producers for its verification service.

Treasury Ministers and officials have meetings with a wide variety of organisations in the public and private sectors as part of the process of policy development and delivery.

Details of ministerial and permanent secretary meetings with external organisations on departmental business are published on a quarterly basis and are available at: https://www.gov.uk/government/collections/hmt-ministers-meetings-hospitality-gifts-and-overseas-travel

Alcohol duty is paid by producers, and is therefore not typically paid directly by pubs. Further, according to estimates derived from sales data collected on behalf of the Office for National Statistics, only around 15% of spirits are consumed on-trade.

At Autumn Budget 2025 the Chancellor confirmed that alcohol duty will be uprated on 1 February 2026 to main its current real-terms value. The government does not expect this to have any significant impact on competition between the on and off trades.

Alcohol duty is paid by producers, and is therefore not typically paid directly by pubs. Further, according to estimates derived from sales data collected on behalf of the Office for National Statistics, only around 15% of spirits are consumed on-trade.

At Autumn Budget 2025 the Chancellor confirmed that alcohol duty will be uprated on 1 February 2026 to main its current real-terms value. The government does not expect this to have any significant impact on competition between the on and off trades.

The government published a Tax Information and Impact Note (TIIN) which set out the impact of the changes, including for businesses, to employer NICs alongside the introduction of the Bill.

The Government decided to protect the smallest businesses from these changes by increasing the Employment Allowance from £5,000 to £10,500. This means that this year, 865,000 employers will pay no NICs at all, and more than half of all employers will either gain or will see no change. It means employers will be able to employ up to four full-time workers on the National Living Wage without paying employer NICs.  Businesses will still be able to claim employer NICs reliefs including those for under-21s and under-25 apprentices.

At Budget 2025, the government asked licensing authorities in England and Wales to explicitly consider the need to promote growth and deliver economic benefits in their decisions and set this out in the first National Licensing Policy Framework.

HMRC does not hold data on alcohol duty paid on alcohol sold in pubs. Alcohol duty is paid at the point of production or import and would not generally be paid directly by pubs.