Chinese whisky tariff cut to come into force on Monday

A cut in tariffs on Scottish whisky exports to China will come into force on Monday, the prime minister has told the BBC.

As a result of a new deal agreed during Sir Keir Starmer's trip to China, import taxes on whisky will be cut from 10% to 5% - a deal the UK government said would be worth £250m to the UK's economy over the next five years.

Scotch whisky is a key export for Britain's drinks sector, with more than £5bn in annual exports. In recent years, China has been one of its fastest-growing markets.

The prime minister said it was "hugely good news" for the sector which translates to "money, wealth and jobs back in the United Kingdom."

Speaking to the BBC's Chris Mason during his trip to China, Sir Keir said: "We also announced that tariffs on whisky would be halved. I can tell you now that has moved on in 24 hours and that halving on tariffs will start on Monday.

"For the whisky sector back at home that is hugely good news, along with the deal we did with India, this is very welcome news because they know that translates into money, wealth and jobs back in the United Kingdom."

Starmer said the start date showed the "speed in which" his government was working, adding that the move was an "immediate bankable benefit".

China is currently the 10th largest market for Scotch whisky by value, with the new deal coming in the wake of an earlier agreement by the UK government which cut tariffs on sales of Scotch to India.

Industry groups welcomed the move, saying it would help Scottish distillers compete in a crowded market where US, European and Japanese firms are also vying for customers.

Scotch Whisky Association chief executive Mark Kent said China was a "priority growth market" for many distilleries, adding that the country had "developed into a knowledgeable and premium-focused market with a strong appreciation of Scotch".

Kent added: "We are very grateful to the prime minister and officials on both sides for this welcome development and look forward to working with the UK government on the rapid implementation of the tariff reduction, as part of wider work to improve competitiveness in all Scotch whisky's global markets."

The Scottish Chambers of Commerce chief executive, Charandeep Singh, said: "Reducing whisky duty will allow us to leverage this demand to our advantage, making Scottish distillers more competitive in this market.

"There is much more work to be done, but this sends a positive signal that the UK government is championing one of Scotland's flagship industries overseas."

First Minister John Swinney described the deal as "very welcome news".

"China is a vital market for Scotch whisky exports and one which has grown considerably over the last five years," he said.

The trip also saw Sir Keir secure a deal on visa-free travel to China for UK citizens, while restrictions on British parliamentarians have been lifted, following talks with President Xi.

Those visiting China from the UK for less than 30 days will no longer need a visa under the agreement.

It will apply to those travelling to China for business and as tourists and brings the rules for UK visitors in line with those from 50 other countries, including France and Germany.

The change will not come into effect immediately but Beijing is understood to have committed to unilateral visa-free entry for UK citizens, with a start date to be confirmed.

Both sides also agreed to co-operate on disrupting migrant-smuggling networks.

Some have expressed concerns about Starmer's visit to China, but the prime minister said it would be "foolhardy to sit with your head in your hands and refuse to engage" with the country.