Alcohol Duty Debate

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Department: HM Treasury
Monday 19th December 2022

(2 years ago)

Commons Chamber
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James Cartlidge Portrait James Cartlidge
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The hon. Gentleman makes a good point. To clarify, the draught relief is the new differential duty between the rate applied to alcohol purchased on draught—in other words, in the pub—as opposed to, for example, in the supermarket. This is about creating a level playing field. Small brewers relief is becoming small producers relief, so it extends to cider makers, for example.

As a general point, I have a chart here—you will be pleased to know, Mr Deputy Speaker, that I will not get it out—showing the old rates and the new rates that will come in under the reform, and it is striking how much leaner the new system is. I am more than happy to write to the hon. Gentleman with details of the taper and the technical points. I think he will observe that this is a much simpler system.

Andrew Jones Portrait Andrew Jones (Harrogate and Knaresborough) (Con)
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I welcome the extension of the duty freeze and am particularly pleased to see the draught relief to support the important on-trade. Can my hon. Friend comment or write to me about the proposals for mergers and acquisitions to absorb production over three years rather than one? Basically, allowing that to happen would facilitate a smoother business transition and smoother ownership in the sector.

James Cartlidge Portrait James Cartlidge
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Of course, my hon. Friend was an Exchequer Secretary to the Treasury, and I should put on record that he did much of the work that led to us being able to deliver these reforms in the first place. On his question about mergers and acquisitions, I am more than happy to meet him and share with him further detail from officials about the matter.