Alistair Darling, the "Chancer of the Exchequer", in his pre-Budget statement yesterday, while trying to take remedial action to address the mess his profligate predecessor has managed to get the UK economy in, announced an 8% rise in excise duty on spirits.

That is 47p per bottle of standard whisky, together with the March increase of 9% makes a total of £6.45 per bottle in excise duty. At the same time, VAT is to be lowered from 17.5% to 15% up to 31/12/09.

But less than 24 hours after the announcement, he has agreed to "review it" thanks to pressure from our friends at the SWA.

Darling insisted his intention had been to keep alcohol taxation "broadly" the same. The Chancer said: "but while VAT was charged on price, duty was charged on alcohol content so there was not an exact match". Too right, despite the 2.5% drop in VAT and an 8% rise in Duty, it amounts to an increase of about 5%.  Do these guys really think it through?

In addition, he said that as the majority of whisky is exported (91% these days) there would not be much effect on the industry. Just more smuggling as people try to avoid the third highest duty levels in Europe.

He added, talking about the SWA: "When they see the detail they will see that broadly the effect of cutting VAT and changing the duty - one cancels out the other, because my intention is I don't want to raise any more or any less."

And what about when the VAT returns to 17.5% - or indeed 18.5% as perhaps unfortunately indicated today?