Question to the HM Treasury:

To ask the Chancellor of the Exchequer, whether he plans to take steps to avoid spirits producers forestalling sales to reduce the amount of duty they owe.

Answered by Gareth Davies - Exchequer Secretary (HM Treasury)

As with all taxes, the government keeps the alcohol duty system under review during its yearly Budget process.

HMRC published its most recent quarterly alcohol bulletin in November 2023. This can be found here:

https://www.gov.uk/government/statistics/alcohol-bulletin

The publication contains annual duty receipts from alcohol types, including spirits. The accompanying tables contain historical annual and monthly duty receipts for spirits. The next instalment of this bulletin is due to be published on 29 February 2024.

Question to the HM Treasury:

To ask the Chancellor of the Exchequer, what estimate he has made of the cost to the public purse of the loss of spirits duty as a result of forestalling in each year since 2015.

Answered by Gareth Davies - Exchequer Secretary (HM Treasury)

Since 2015, the duty rates for spirits have increased twice. Rates first increased in March 2017, with receipts data showing no evidence of forestalling for this uprating.

Alcohol receipts data can be found in the quarterly HMRC alcohol bulletin: https://www.gov.uk/government/statistics/alcohol-bulletin

Question to the HM Treasury:

To ask the Chancellor of the Exchequer, pursuant to the Answer of 21 March to Question 167167 on Spirits: Excise Duties and with reference to Table 4.1 of the Spring Budget 2023, HC1183, published on 15 March 2023, if he will make an assessment of the Exchequer impacts of the August 2023 increase in duty in spirits for (a) 2023-24, (b) 2024-25, (c) 2025-26, (d) 2026-27 and (e) 2027-28.

Answered by James Cartlidge - Minister of State (Ministry of Defence)

From 1 August 2023, the new alcohol duty system will not distinguish between alcohol categories, and there will not be a spirits duty. All alcohol between 8.5% and 22% ABV will pay a duty rate of £28.50 per litre of pure alcohol, and all alcohol above 22% will pay a duty rate of £31.64.

Exchequer impacts of this measure are set out in Table 4.1 of Spring Budget 2023 and have been certified by the Office for Budget Responsibility. More details can be found in the policy costings document published alongside Spring Budget 2023.

Question to the HM Treasury:

To ask the Chancellor of the Exchequer, if he will make an estimate of the additional tax revenue that will be generated in (a) 2023-24, (b) 2024-25, (c) 2025-26, (d) 2026-27 and (e) 2027-28 from the August 2023 increase in duty on sprits.

Answered by James Cartlidge - Minister of State (Ministry of Defence)

As announced at Spring Budget 2023, in line with the Government’s plan to manage the UK economy responsibly, the Government is uprating the previously published reform rates and structures by RPI from 1 August 2023.

However, recognising the vital role pubs play in our communities, the Government will ensure the duty on an average draught pint of beer served in a pub does not increase.

Exchequer impacts of this measure are set out in Table 4.1 of Spring Budget 2023 and have been certified by the Office for Budget Responsibility. More details can be found in the policy costings document published alongside Spring Budget 2023.

Question to the HM Treasury:

To ask the Chancellor of the Exchequer, if he will make it his policy to freeze duty on spirits in the Spring Budget 2023.

Answered by James Cartlidge - Minister of State (Ministry of Defence)

The Government is unable to speculate on the content of the Spring Budget, which takes place on 15 March.

Question to the HM Treasury:

To ask the Chancellor of the Exchequer, what steps he will include in the Autumn Statement to protect small distillers from any increase in the level of spirits duty.

Answered by James Cartlidge - Minister of State (Ministry of Defence)

The Government keeps the duty rates under review during its yearly budget process and aims to balance the impact on businesses with its public health objectives.

The alcohol duty uprating decision and interactions with the wider reforms to alcohol duties will be considered in due course.

Question to the HM Treasury:

To ask the Chancellor of the Exchequer, what impact assessment his Department has undertaken of the cancelled duty freeze on the Scotch Whisky industry given the effect of RPI.

Answered by Felicity Buchan - Parliamentary Under Secretary of State (Department for Levelling Up, Housing and Communities)

On 17 October, the Chancellor announced a reversal of almost all of the tax measures set out in the Growth Plan that have not been legislated for in parliament. This includes the freeze of alcohol duty rates from 1 February 2023. The purpose is to ensure the UK’s economic stability and to provide confidence in the government’s commitment to fiscal discipline. The Chancellor made clear in his statement that the UK’s public finances must be on a sustainable path into the medium term.

The alcohol duty uprating decision and interactions with the wider Alcohol Duty Review, which continues as planned, will be considered in due course.

The government will continue to assess the impact of its decisions on alcohol duties, including through ongoing engagement with stakeholders.

Question to the HM Treasury:

To ask the Chancellor of the Exchequer, what assessment his Department has made of HMRC spirits excise duty receipts for 2021-22; and how the amount of revenue received by HM Treasury compares with projections for receipts for 2023-24.

Answered by Felicity Buchan - Parliamentary Under Secretary of State (Department for Levelling Up, Housing and Communities)

On 17 October, the Chancellor announced a reversal of almost all of the tax measures set out in the Growth Plan that have not been legislated for in parliament. This includes the freeze of alcohol duty rates from 1 February 2023. The purpose is to ensure the UK’s economic stability and to provide confidence in the government’s commitment to fiscal discipline. The Chancellor made clear in his statement that the UK’s public finances must be on a sustainable path into the medium term.

The alcohol duty uprating decision and interactions with the wider Alcohol Duty Review, which continues as planned, will be considered in due course.

The government will continue to assess the impact of its decisions on alcohol duties, including through ongoing engagement with stakeholders.

Question to the HM Treasury:

To ask the Chancellor of the Exchequer, what impact assessment his Department has made of the potential effect of cancelling the freeze in spirits excise duty on jobs maintained by Scotch Whisky distilleries.

Answered by Felicity Buchan - Parliamentary Under Secretary of State (Department for Levelling Up, Housing and Communities)

On 17 October, the Chancellor announced a reversal of almost all of the tax measures set out in the Growth Plan that have not been legislated for in parliament. This includes the freeze of alcohol duty rates from 1 February 2023. The purpose is to ensure the UK’s economic stability and to provide confidence in the government’s commitment to fiscal discipline. The Chancellor made clear in his statement that the UK’s public finances must be on a sustainable path into the medium term.

The alcohol duty uprating decision and interactions with the wider Alcohol Duty Review, which continues as planned, will be considered in due course.

The government will continue to assess the impact of its decisions on alcohol duties, including through ongoing engagement with stakeholders.

Question to the HM Treasury:

To ask the Chancellor of the Exchequer, what impact assessment his Department has made of the potential effects of cancelling freeze in spirits excise duty on investment by Scotch Whisky distilleries.

Answered by Felicity Buchan - Parliamentary Under Secretary of State (Department for Levelling Up, Housing and Communities)

On 17 October, the Chancellor announced a reversal of almost all of the tax measures set out in the Growth Plan that have not been legislated for in parliament. This includes the freeze of alcohol duty rates from 1 February 2023. The purpose is to ensure the UK’s economic stability and to provide confidence in the government’s commitment to fiscal discipline. The Chancellor made clear in his statement that the UK’s public finances must be on a sustainable path into the medium term.

The alcohol duty uprating decision and interactions with the wider Alcohol Duty Review, which continues as planned, will be considered in due course.

The government will continue to assess the impact of its decisions on alcohol duties, including through ongoing engagement with stakeholders.

Question to the HM Treasury:

To ask the Chancellor of the Exchequer, whether he plans to review the application of duty stamps on Scotch whisky and spirits.

Answered by Helen Whately - Minister of State (Department of Health and Social Care)

Duty stamps do not raise revenue, they are an anti-fraud measure that have helped secure the alcohol supply chain, making it more difficult for illicit products to infiltrate the market. HMRC’s tax gap estimate indicates that such measures are successfully keeping spirit’s fraud at historically low levels.

The Government is keen to support innovation in the alcohol sector. That is why, at Budget 2020, we announced plans to review alcohol duty with the aim of improving the current system to make it simpler, more economically rational and less administratively burdensome.

Following a Call for Evidence launched in October 2020, the Government is currently considering the responses. While scope of this review does not include duty stamps, HM Revenue and Customs will review the duty stamps policy when any changes to the alcohol regime have been developed.

Question to the HM Treasury:

To ask the Chancellor of the Exchequer, how many instances of sprits and duty fraud have been successfully prosecuted since the introduction of the Duty Stamps Scheme.

Answered by Helen Whately - Minister of State (Department of Health and Social Care)

HMRC regularly publishes alcohol fraud prosecution data on the GOV.UK website. The most recent publication (Tackling alcohol smuggling: outputs – April 2016 to April 2019) shows that during the period April 2016 and March 2019 HMRC conducted 33 arrests with 25 convictions for offences relating to alcohol fraud. Figures for the periods since April 2019 will be published in due course.

Found: Duties], 23 September 2021, PQ 32978 [on Beer and Cider: Excise Duties ], 14 July 2022, PQ 76036 [on Spirits