Question to the HM Treasury:

To ask Mr Chancellor of the Exchequer, what assessment he has made of the economic effect on small and new-entrant producers of the introduction of the standard charge imposed by HM Revenue and Customs under the Spirit Drinks Verification Scheme; and what reports he has received of whether the standard charge is a barrier to entry for small and new-entrant producers and a restraint on trade.

An assessment of the impact of the verification scheme was published in 2012 as part of a consultation: http://webarchive.nationalarchives.gov.uk/20121205004423/http://customs.hmrc.gov.uk/channelsPortalWebApp/channelsPortalWebApp.portal?_nfpb=true&_pageLabel=pageLibrary_ConsultationDocuments&propertyType=document&columns=1&id=HMCE_PROD1_032348

No respondents to the consultation suggested an alternative method of apportioning the costs of the scheme; this was reflected in a subsequent assessment of impacts, although this has not been published.

The Spirit Drinks (Costs of Verification) Regulations 2013 require the Commissioners for HM Revenue and Customs to review the operation and effect of these regulations and publish a report within five years of them coming into effect. Such a report will be produced in 2018.

There have been no reports to say that the standard charge is a barrier to entry for small and new entrant producers or a barrier to trade. The Government would welcome any evidence that the fees are a barrier to entry.