Whisky chiefs blast Brown

The Scotch whisky industry says it is suffering

The Chancellor of the Exchequer Gordon Brown has been accused of undermining the drinks industry north of the border.

Scotch whisky bosses delivered their attack when they came before members of the Scottish Affairs Committee on Wednesday.

They are pressing for the duty on a bottle of whisky to be cut, bringing it into line with the tax on wine and beer.

The Scotch Whisky Association says tax on home-produced spirit is often higher than imported alcohol.

And they insist drinkers pay on average 8p more in tax on a pub measure of whisky than they do on wine.

Plea to Brown

The committee heard from association members as part of an investigation by MPs into the drinks industry in Scotland.

Whisky producers believe they are part of one of Britain's best businesses, but they say their work has been hampered by a taxation system "from another age".

They put together a document in November last year entitled Excise Duty: The Case for a New Deal and submitted it to Mr Brown.

The industry is still recovering from the blow it received in March when Europe declared that its £12m EU subsidy would be cut.

The European Commission decided to reduce the level of grants paid to food and drink companies, including makers of whisky, tomato ketchup, ice cream and peanut butter.