Asked by: Wendy Chamberlain (Liberal Democrat - North East Fife)
Question to the HM Treasury:
To ask the Chancellor of the Exchequer, what the evidential basis is for how the proposals to reform alcohol taxation will support improved public health, in the context of the comparative number of units of alcohol in a (a) four per cent ABV pint of beer or cider and (b) a Scotch Whisky highball or in a gin and tonic.
Answered by Helen Whately - Minister of State (Department of Health and Social Care)
The Government intends to move to a new progressive system of duty that taxes all products in reference to the litres of pure alcohol they contain, with products with higher concentration of alcohol paying a higher rate of duty per unit. As part of this approach, the Government is cutting duty on lower ABV spirits-based drinks, such as pre-packaged gin and tonics.
The Government received evidence supporting this approach during its call for evidence held in 2020. As set out in the summary of responses published in October 2021, public health groups cited the correlation between cheap, high strength spirits (such as vodka) and alcohol-related harms, as the volume of drink needed to reach intoxication is smaller with higher strength drinks. The Government has a responsibility to address these concerns.
Asked by: Baroness Merron (Labour - Life peer)
Question to the HM Treasury:
To ask Her Majesty's Government what assessment they have made of the impact of the proposed reform of alcohol duty announced in the Autumn Budget Statement on (1) alcohol-related hospitalisations, (2) alcohol-related deaths, and (3) other health outcomes.
Answered by Lord Agnew of Oulton
The reform of alcohol duty has been designed to support the Government’s public health objectives. From 2023, all drinks will be taxed according to their alcohol content. Some high strength products such as white cider will go up in duty, whilst draught beer and cider in pubs will pay less duty. The Government expects that these changes will have a positive impact, with the potential to reduce alcohol-related hospitalisations and deaths, as well as providing other positive health outcomes.Asked by: Baroness Merron (Labour - Life peer)
Question to the HM Treasury:
To ask Her Majesty's Government what assessment they have made of the impact of the proposed reform of alcohol duty announced in the Autumn Budget Statement on alcohol consumption.
Answered by Lord Agnew of Oulton
The reform of alcohol duty has been designed to support the Government’s public health objectives. From 2023, all drinks will be taxed according to their alcohol content. Some high strength products such as white cider will go up in duty, whilst draught beer and cider in pubs will pay less duty. The Government expects that these changes will have a positive impact, with the potential to reduce alcohol-related hospitalisations and deaths, as well as providing other positive health outcomes.Asked by: Ian Mearns (Labour - Gateshead)
Question to the HM Treasury:
To ask the Chancellor of the Exchequer, whether he plans to remove the 40 litre and over threshold from the proposed cut to VAT on the sale beer and cider.
Answered by Helen Whately - Minister of State (Department of Health and Social Care)
The Treasury welcomes views from industry on the qualifying criteria for the duty relief on draught beer and cider. We will discuss this further with industry groups as part of our alcohol duty review consultation process.
Asked by: Ian Mearns (Labour - Gateshead)
Question to the HM Treasury:
To ask the Chancellor of the Exchequer, what assessment he has made of the potential impact of the proposed VAT cut on the sale beer and cider on (a) small businesses and (b) breweries which do not supply their products in containers over 40 litres in capacity.
Answered by Helen Whately - Minister of State (Department of Health and Social Care)
The Treasury welcomes views from industry on the qualifying criteria for the duty relief on draught beer and cider. We will discuss this further with industry groups as part of our alcohol duty review consultation process.
Asked by: Robert Halfon (Conservative - Harlow)
Question to the Department for Business, Energy and Industrial Strategy:
To ask the Secretary of State for Business, Energy and Industrial Strategy, what steps he is taking to support pubs in Harlow.
Answered by Paul Scully
The Department regularly meets with representatives from across the hospitality sector to discuss how it can recover and build back from the pandemic. We have provided an unprecedented support package of £352 billion, including grants, loans, business rates relief, VAT cuts and the job retention scheme, which hospitality businesses have access to. We have published a new Hospitality Strategy: Reopening, Recovery, Resilience to ensure England’s pubs, bars, restaurants and other hospitality venues can thrive long-term.
My Rt. Hon. Friend Mr Chancellor of the Exchequer set out further steps to help the economy recover in the Autumn Budget. These included extending the Recovery Loan Scheme until June 2022, providing over £1 billion to ensure businesses can continue to access loans and other finance, and a 50% business rates discount for hospitality businesses for the year 2022-23. Pubs will directly benefit from draught beer and cider cuts by 5%, as well as simplifying alcohol duty and freezing duty rates on beer, cider, wine and spirits.
Asked by: Alex Sobel (Labour (Co-op) - Leeds North West)
Question to the HM Treasury:
To ask the Chancellor of the Exchequer, what assessment he has made of the potential merits of increasing the minimum juice content in HMRC's definition of cider from 35 per cent to 50 per cent for the purpose of taxation.
Answered by Helen Whately - Minister of State (Department of Health and Social Care)
As announced at Autumn Budget 2021, the Government will build on Small Brewers Relief to extend small producer reliefs, including to cidermakers. The technical details of our new small producer reliefs will be finalised through the alcohol duty review consultation process.
The Government will explore the merits of increasing the minimum juice content through our alcohol duty review consultation.
Asked by: Alex Sobel (Labour (Co-op) - Leeds North West)
Question to the HM Treasury:
To ask the Chancellor of the Exchequer, what assessment he has made of the potential merits of introducing a progressive duty system for small cider producers.
Answered by Helen Whately - Minister of State (Department of Health and Social Care)
As announced at Autumn Budget 2021, the Government will build on Small Brewers Relief to extend small producer reliefs, including to cidermakers. The technical details of our new small producer reliefs will be finalised through the alcohol duty review consultation process.
The Government will explore the merits of increasing the minimum juice content through our alcohol duty review consultation.
Asked by: Rupa Huq (Labour - Ealing Central and Acton)
Question to the HM Treasury:
To ask the Chancellor of the Exchequer, what assessment he has made of the potential merits of a progressive duty system for small cider producers.
Answered by Helen Whately - Minister of State (Department of Health and Social Care)
As announced at Autumn Budget 2021, the Government will build on Small Brewers Relief to extend small producer reliefs, including to cidermakers. The technical details of our new small producer reliefs will be finalised through the alcohol duty review consultation process.Asked by: Rupa Huq (Labour - Ealing Central and Acton)
Question to the Department for Environment, Food and Rural Affairs:
To ask the Secretary of State for Environment, Food and Rural Affairs, what assessment he has made of the potential merits of raising the minimum juice content for cider.
Answered by Victoria Prentis - Attorney General
The UK has a history of cidermaking dating back thousands of years. This proud tradition has given rise to a wide variety of cidermaking traditions throughout the UK, ranging from small, artisanal producers to large scale global businesses. The UK Government recognises the importance of cider and cidermakers to British farmers, publicans, and consumers alike. The present requirement under the Alcoholic Liquor Duties Act 1979 that 35% of the finished product be made up by apple juice was last revised in 2010, following consultation with cidermakers. Defra believes that this strikes a suitable balance, facilitating the various ancient traditions found on these islands while still allowing for innovation in the sector and large-scale production of popular styles. Neither consumers nor cider makers have been asking for a change in the rules. As a result, the Government has not made any more recent assessment of the merits of raising the minimum juice content for cider and has no plans to amend this provision in the 1979 Act.