Finance (No. 2) Bill

Daisy Cooper Excerpts

Committee of the whole House
Wednesday 19th April 2023 Commons Chamber

Each of the clauses I have discussed will help us to reform the tax system. On devolved social security benefits, clause 27 will provide the Government with the flexibility to confirm the tax treatment within the tax year, rather than be subject to the UK parliamentary timetable. The alcohol duty clauses replace the existing nonsensical alcohol duty system, initially created by a complex web of EU law, with a more consistent, simplified approach to taxing alcohol according to its strength. This will help to better meet our public health objectives and is in line with this Government’s commitment to tax simplification. We are also introducing two new reliefs to help businesses grow and thrive, not least to support our precious pubs.

[Daisy Cooper (St Albans) (LD)]

The Minister has talked about the Government’s ambition to simplify the tax system, but he will be aware that the most adversely affected businesses are the port and sherry traders, which will feel the force of a full £20 million increase, despite fortified wine being only 3% of the total wine trade. They have asked for this process to be simplified further by taxing fortified wine at the midpoint of 17.5% ABV. Is that something the Government might still consider?

[James Cartlidge]

It is a fair point from the hon. Lady. I do think this is a significant simplification. We are moving from 15 bands to six. I would love it to be 15 to one, but unfortunately “Fifteen to One” is going to remain the name of a quiz programme. If she looks carefully at the new rates—I am more than happy to share a copy of the bands with her—she will see that it is a significant simplification. It provides many benefits to the wine trade, particularly with our differential duty and the small producers relief.

To conclude, I will be happy to respond to the amendments on Scotch whisky at the end, but in the meantime I commend to the Committee clauses 27, 47, 48 and 50 to 60, and schedules 7 to 9.