Question to the HM Treasury:
To ask Her Majesty’s Government what is the estimated total loss to HM Treasury over the next five years as a direct result of ending the alcohol duty escalator in 2014.
Budget 2014 announced a cut in beer duty of 2 per cent, the freezing of duty rates on spirits and cider and the cancellation of the alcohol duty escalator for wine. The duty escalator for beer ended in 2013. The impact on alcohol revenues of the changes made at Budget 2014 were estimated as shown below[1]:
2014-15 | 2015-16 | 2016-17 | 2017-18 | 2018-19 | |
Exchequer impact £m | -290 | -295 | -305 | -315 | -325 |
[1] Link to Budget 2014 document can be found here: https://www.gov.uk/government/publications/budget-2014-documents