Written questions by Bowie.

What discussions he has had with the scotch whisky industry on barriers to business.

I meet regularly with the Scotch Whisky industry, and am pleased we can work closely on a range of shared priorities to support growth in the sector.

When he next plans to meet the Scotch Whisky Association.

I have had several meetings with the Scotch Whisky Association (SWA) in recent months, including during my first week in office, and am pleased to be working closely with them on a range of shared priorities. I will be driving growth in Scotland around the world through the Brand Scotland initiative, and will work closely with the SWA to promote the UKs largest food and drink export across all four corners of the globe.

With reference to paragraph 2.40 of the Autumn Budget 2024, HC 295, published on 30 October 2024, what assessment he has made of the potential impact of an increase in the rate of employers' National Insurance Contributions on (a) pubs and (b) small restaurants in Scotland.

This Government inherited a £22 billion black hole in the nation’s finances. The action we are taking in this Budget restores economic stability so we can invest in the future.The government recognises the need to protect the smallest businesses, including small restaurants, which is why we have more than doubled the Employment Allowance to £10,500, meaning more than half of businesses with NICs liabilities either gain or see no change next year.In addition, we are making business rates in England fairer to protect the high street. The Government will introduce permanently lower tax rates for retail, hospitality, and leisure (RHL) properties with rateable values less than £500,000, alongside 40% relief next year for RHL properties up to a cash cap of £110,000 per business. Business rates are devolved and the Scottish Government could support Scotland;s high streets by using some of the record budget settlement it received to match these reforms.Also, to recognise the economic and cultural importance of pubs, and commitment to supporting smaller brewers, the government is cutting alcohol duty on draught products from February next year.

What assessment he has made of the potential impact of (a) increases to the Energy Profits Levy and (b) the abolition of the investment allowance on north east Scotland.

The UK Government recognises that oil and gas will continue to have a role in the UK’s energy mix for decades to come and is committed to managing the energy transition in a way that supports jobs in existing and future industries. But we require the sector to contribute to the ambition to make the UK a clean energy superpower.At Autumn Budget 2024, the government confirmed that from 1 November 2024, the Energy Profits Levy (EPL) rate would increase by 3 percentage points to 38%, the EPL investment allowance would be abolished and the EPL decarbonisation allowance rate would be adjusted to 66%. The government also confirmed an extension to the period the levy applies from 31 March 2029 until 31 March 2030. To support jobs in future and existing industries, the government decided to make no additional changes to the availability of capital allowances in the EPL.The government has carefully considered the impact of the removal of the EPL’s investment allowance. HM Treasury publishes impacts in summary form for tax measures in tax information and impact notes (TIINs) alongside the Finance Bill. The summary of impacts from these changes to the EPL can be found here: https://www.gov.uk/government/publications/energy-profits-levy-reforms-2024

What assessment he has made of the potential impact of increases on the duty for non-draught alcohol on the scotch whisky industry.

The overall alcohol package within the recent Budget balances commercial pressure on the alcohol industry with the need to raise revenue to address the £22 Billion blackhole caused by the decisions of the previous government. Increases on duty are in line with inflation and under the previous Government, duty was increased by 10.1% following the duty review. 90% of Scotch Whisky is exported, paying no duty. To provide specific support to the Scotch Whisky industry, the government will reduce fees for geographical verification.

What assessment he has made of the impact of changes to inheritance tax on the Scottish economy.

Despite a massive £22 billion black hole in the nation’s finances that this Government inherited, the Scottish Government will receive a record £47.7 billion settlement in 2025/26 - the largest in real terms in the history of devolution.This includes additional Barnett consequentials of £1.5 billion for 2024/25 and a further £3.4 billion for 2025/26.On top of this, the UK Government committed to invest directly around £1.4 billion on important Scottish local growth projects. This includes Freeports, Investment Zones, long term plans for towns, Levelling Up Fund projects, Levelling Up Partnerships and a full commitment to remaining Deal projects. As well as a further £900 million of support for the expanded UK Shared Prosperity Fund in 2025/26.Also, our new approach is making the UK inheritance tax system fairer, ensuring the wealthiest households contribute more while reflecting people’s strongly held desire to pass down their assets to children and grandchildren.

What steps he is taking to promote (a) Scotch whisky exports and (b) other Scottish exports.

The recent budget saw the Scotland Office awarded 750 thousand pounds to expand its international trade activities and establish the Brand Scotland initiative.Brand Scotland funding will support industry via trade missions, projects delivered by the overseas network, and promotional events in the UK and overseas. The Scotland Office routinely promotes Scotch Whisky at events we run overseas, for example during my visits to Norway, and South East Asia this month. Scottish exports, including whisky, will all benefit from this work.

What assessment he has made of the potential impact of proposed increases to the Energy Profits Levy on future employment levels in Scotland.

The UK Government recognises that oil and gas will continue to have a role in the UK’s energy mix for decades to come and is committed to managing the energy transition in a way that supports jobs in existing and future industries. But we require the sector to contribute to the ambition to make the UK a clean energy superpower. At Autumn Budget 2024, the government confirmed that from 1 November 2024, the Energy Profits Levy (EPL) rate would increase by 3 percentage points to 38%, the EPL investment allowance would be abolished and the EPL decarbonisation allowance rate would be adjusted to 66%. The government also confirmed an extension to the period the levy applies from 31 March 2029 until 31 March 2030. To support jobs and provide certainty, the government decided to make no additional changes to the availability of capital allowances in the EPL. The government has carefully considered the impact of the removal of the EPL’s investment allowance. HM Treasury publishes impacts in summary form for tax measures in tax information and impact notes (TIINs) alongside the Finance Bill. The summary of impacts from these changes to the EPL can be found here: https://www.gov.uk/government/publications/energy-profits-levy-reforms-2024

If he will make an assessment with Cabinet colleagues of the potential impact of the changes made to inheritance tax at the Autumn Budget 2024 on the financial viability of small family farms in the north east of Scotland.

This Government inherited a £22 billion in year black hole in the nation’s finances. The action we are taking in this Budget restores economic stability so we can invest in the future. The government recognises that people want to pass on their assets to their families. However, the government is making the inheritance tax system fairer by ensuring that wealthy estates contribute more to the public finances. The vast majority of agricultural estates currently pay no inheritance tax, and that will continue to be the case after the reforms announced at Budget. This means that any farm, following the death of the owner, can pass on a £1 million free of inheritance tax if they leave their residence to direct descendants. The reforms announced for agricultural property relief are only expected to affect around 500 claims at death each year from 2026-27. Almost three-quarters of estates claiming the relief are expected to be unaffected.