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Debate between Lord Brooke of Alverthorpe and Baroness Neville-Rolfe

Thursday 23rd March 2017 Lords Chamber

[Baroness Neville-Rolfe]

I am grateful to my noble friend. I will certainly look at the point without commitment.

[Lord Brooke of Alverthorpe (Lab)]

My Lords, I am not sure whether the Minister is old enough to qualify for the silly £10 a year Christmas bonus that most of the people in this Chamber will receive. Apparently it was introduced decades ago and if it had been updated with inflation it would now be worth £187 a year. Building on the suggestion of the noble Lord, Lord Lansley, why should that not be converted into savings rather than paid out, when many people do not know what it is about, why they are receiving it or what they do with it?

[Baroness Neville-Rolfe]

The noble Lord highlights that there are many good pension benefits in this country. I take his point but this is a difficult area in which to make sudden changes.

Health: Duties on Food and Drink

Debate between Lord Brooke of Alverthorpe and Baroness Neville-Rolfe

Monday 6th March 2017 Lords Chamber

[The Commercial Secretary to the Treasury (Baroness Neville-Rolfe) (Con)]

My Lords, the OTS’s current VAT simplification review will not consider these issues. The review is focused on identifying opportunities for simplification of the VAT system and establishing whether the system is working to minimise tax compliance burdens. The Government have, however, gone to great lengths to promote healthy eating, drinking and lifestyles. We have announced a new soft drinks industry levy and a sugar reduction programme to help address childhood obesity.

[Lord Brooke of Alverthorpe (Lab)]

My Lords, I am grateful to the Minister for her reply, but disappointed. I wonder whether she might be persuaded to reflect on the need for a further examination of the subject. Does she agree that Brexit provides the opportunity for us to look at VAT, customs and excise duty, and a whole range of taxes in a much more flexible way than we have been able to when linked to Europe? Does she agree that we have a major problem with the costs that alcohol is causing to the NHS, and that one way we might change that is by persuading people to move from high-strength to lower-strength drinks, and that now we have this flexibility coming there is a strong case for trying to effect such a change?

[Baroness Neville-Rolfe]

My Lords, I have some sympathy with the point the noble Lord makes. The Government believe that alcohol duties should be related to the alcoholic strength of drinks but, as he says, EU law currently restricts changes to the rates and structure of alcohol duties. We have already said that we would like any future changes to allow duty on wine to rise in line with alcoholic strength. We are constrained until we leave the EU but we will certainly consider this issue carefully in the light of EU exit.