Budget 'threatens Scottish jobs'

Opposition parties are not happy with the tax stamp move

Opposition MPs north of the Border say Gordon Brown has delivered a "grey Budget" which threatens Scottish jobs.

The Scottish National Party MP Alex Salmond attacked plans to go ahead and place tax stamps on whisky.

And the Liberal Democrats also voiced surprise at the decision, which has been criticised by the industry.

But Scottish Secretary Alistair Darling said the step was "the most effective response to the serious problem of spirits duty fraud".

The stamps are intended to provide physical proof that duty has been paid on each bottle.

Mr Salmond said the introduction of the scheme threatened Scottish jobs.

He said: "Two years ago, he (Mr Brown) was warned against a tax hike on the oil and gas industry but he did it anyway. Jobs were lost and the industry is still recovering from the damage that was done.

Key measures Beer duty up 1p Duty frozen on spirits, cider and sparkling wine Tax on cigarettes up 8p a packet Inheritance tax threshold up to £263,000 Corporation tax, capital gains tax, air passenger duties, vehicle excise duty and stamp duty all frozen Budget at-a-glance

"This year, he has blundered into imposing damaging tax stamps on whisky, which threatens jobs in this vital industry.

"Since he became chancellor, Gordon Brown has pocketed £27.5bn in North Sea revenues, and over £5bn from the whisky industry.

"Brown has used Scottish industries to bankroll the Treasury and has paid Scotland back with job-destroying measures."

Liberal Democrat transport spokesman Lord Thurso said he was "surprised" that Mr Brown had disregarded the whisky industry's views on strip stamps.

Looking at the Budget overall, he said: "He has found himself between the rock - the decisions that he has taken in the past - and the hard place of a general election coming up next year."

Lord Thurso said Mr Brown had left the tough decisions until after the election.

However, Mr Darling hailed the chancellor's plans to invest in science, research and education.

He added that the tax stamps plan showed the government's willingness to take "tough decisions" to tackle fraud.

'Budget is irrelevant'

Mr Darling said there was a package of measures which would go some way towards offsetting the cost of the scheme.

"This is the seventh year in a row that duty has been frozen and I must emphasise that the government will work with the industry to reduce compliance costs and ensure its continuing success," he said.

Scottish Socialist Party leader Tommy Sheridan said the Budget was "irrelevant" to most working people in Scotland.

Gordon Brown delivered his Budget in the Commons on Tuesday

He said that over the last seven years Mr Brown had done nothing to curb the "biggest loss of revenue to the exchequer" - multi-millionaire businessmen and corporations not paying tax in the UK.

The Scottish Green Party's finance spokesman Mark Ballard said he was "very pleased" that the Treasury was looking seriously at land value taxation - which his party wants to see replacing the council tax.

Mr Brown had encouraged all parties to study recommendations of a report which highlights the benefits of capturing the windfall gains created by increasing land values.

Mr Ballard said: "As he pointed out there is at present no tax on the unearned increment in land values when undeveloped land is granted planning permission.

"The council tax is being increasingly discredited and I believe there is a growing interest in LVT as an alternative to local government finance."

He described the move as a glimmer of light in an otherwise poor budget for the environment.