Fife Labour defeated as councillors ‘make a stand’ for whisky industry

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Fife councillors have voted to support the local whisky industry and make a stand against Westminster - to protect the Kingdom’s industry.

In a rare move, the SNP got the support of Lib-Dem and Conservative councillors when the issue was debated at Fife House, and its motion defeated the minority Labour administration. It means council leader, David Ross, will now have to write to the UK Government calling on it to reconsider its “punishing” increases on alcohol duty.

The SNP motion was put to the monthly meeting of the full council on Thursday after UK Chancellor Rachel Reeves’ recent Budget proposals included a proposed 2.7% alcohol duty increase on non-draught types of alcohol – including Scottish whisky – from February 1, 2025.

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The announcement comes on top of a 10.1% duty hike introduced in August 2023 by the previous Tory government.

Diageo's bottling plant in Leven is a major employer (Pic: TSPL)Diageo's bottling plant in Leven is a major employer (Pic: TSPL)
Diageo's bottling plant in Leven is a major employer (Pic: TSPL)

“We heard Sir Keir promise to protect the industry, but that promise like so many others has been twisted up and thrown in the bin,” Councillor Alistair Suttie (SNP for Leven, Kennoway and Largo) said. “We need to remind Westminster of the potential damage they inflict on us when attacking our drinks industry."

The SNP motion from Councillor David Alexander (Leven, Kennoway and Largo) and Cllr Suttie asked the Fife Council leader to write to the Prime Minister and Chancellor “highlighting the huge damage this element of the budget could do to Fife businesses, and Levenmouth specifically”.

Cllr Alexander emphasised that Fife is home to Cameronbridge distillery in Windygates - the largest grain distillery in Europe. Owned by alcohol supergiant, Diageo, the Levenmouth distiller currently employs more than 600 people, and produces 139 million litres of alcohol per year.

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“Its importance to Levenmouth and Fife economy cannot be overestimated,” Suttie said.

The motion recognised the “huge importance of distilling and bottling to many parts of Fife” including Guardbridge, Newburgh, Cupar, Kingsbarns, Charleston, Falkland, Cluny, and Glenrothes, and Levenmouth, and a Lib-Dem amendment from Councillor Fiona Corps (East Neuk and Landward) made sure that all of Fife's distillery communities would be represented in the letter to Westminster.

“Although the motion underscores the considerable damage that a certain element of the budget could inflict on Fife business, it specifically identifies Levenmouth as the area most affected by this change. I believe it is unfair to assume any specific area would feel the impact more than others,” she said.

The SNP group also accepted an amendment from the Conservatives, which added context about the other pressures facing the industry.

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However, they could not find agreement with the Labour party which took a softer approach towards the UK Government proposals.

The Labour amendment would have simultaneously recognised the importance of the whisky industry in Fife as well as the “very difficult situation” faced by the new Government, and asked the council leader to “write to the Prime Minister and Chancellor on the matter of Alcohol duty”.

This idea was rejected, and SNP Councillor John Beare (Glenrothes North, Leslie and Markinch) was “amused” by the proposal.

“The last paragraph of the Labour amendment asks the leader to write to the Prime Minister and Chancellor, but it does not say what they should say,” Cllr Beare said.

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“It doesn’t say alcohol duty is a good thing, alcohol duty is a bad thing, alcohol duty should be left as it is, or that alcohol duty should be changed. It’s completely unspecific. Will the letter be: ‘Dear chancellor, I write to you on the matter of alcohol duty. Kind regards, David Ross’? It doesn’t ask him to give an opinion.”

Ultimately, the motion broke up Fife Council’s informal Lib-Dem, Labour, Conservative coalition, and Labour was defeated 47-18.

Cllr Alexander’s successful motion will “insist” that the council leader write to Sir Keir Starmer, and Rachel Reeves to highlight the “huge damage” the alcohol duty increases could do to Fife businesses and “demand that the planned February increase in duty is reversed”.

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