Alcohol Duty

Grahame Morris Excerpts

Monday 19th December 2022 Commons Chamber

[James Cartlidge]

I am extremely grateful to my hon. Friend, who speaks with great knowledge on these matters. He has been a consistent champion for the Scotch whisky industry, standing up for it in this place, whether on tariffs or duties. I know that he was lobbying the Chancellor and the Prime Minster to continue the freeze, so I hope that he is pleased with the result. On what happens going forward, I will engage with the Scotch whisky industry and indeed all the other alcohol sectors. The clear point is that the extension of the freeze is good news for every single sector and I hope that colleagues welcome that.

[Grahame Morris (Easington) (Lab)]

I am not sure whether I should declare an interest, but I do enjoy a tipple—a glass of beer—on occasions. I thank the Minister for his statement. May I seek clarification in relation to his comments on differential rates of duty? He mentioned the need for certainty and the need to encourage diversity in choice in the small brewery sector. He referred to the new draught relief, worth £100 million a year, to ensure that smaller craft brewers can benefit, and he mentioned that the threshold for qualifying containers will be 20 litres. Can he go further and say something about the duty taper? Are the Government going to address the cliff edge above 5,000 hectolitres for small producers?

[James Cartlidge]

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.