Asked by: Wendy Chamberlain (Liberal Democrat - North East Fife)
Question to the HM Treasury:
To ask the Chancellor of the Exchequer, where the manufacture of beer ranked under the Energy and Trade Intensive Industries scheme criteria.
Answered by James Cartlidge - Minister of State (Ministry of Defence)
The new Energy Bills Discount Scheme will provide all eligible businesses and other non-domestic energy users across the UK with a discount on high energy bills until 31 March 2024, following the end of the current Energy Bill Relief Scheme. It will also provide businesses in sectors with particularly high levels of energy use and trade intensity with a higher level of support.
We have taken a consistent approach to identifying the most energy and trade intensive sectors, with all sectors that meet agreed thresholds for energy and trade intensity eligible for Energy and Trade Intensive Industries (ETII) support. These thresholds have been set at sectors falling above the 80th percentile for energy intensity and 60th percentile for trade intensity, plus any sectors eligible for the existing energy compensation and exemption schemes.
All other eligible businesses will automatically receive a unit discount on their bills of up to £19.61/MW for electricity, and £6.97/MW for gas.
Further details on the scheme, including information on eligibility and discount levels, can be found here: https://www.gov.uk/guidance/energy-bills-discount-scheme.
Asked by: Ben Bradshaw (Labour - Exeter)
Question to the HM Treasury:
To ask the Chancellor of the Exchequer, if he will make an assessment of the potential impact of personal allowances for people bringing excise and non-excise goods into the UK for personal use on the economy.
Answered by James Cartlidge - Minister of State (Ministry of Defence)
Following a consultation in Spring 2020, on 1 January 2021, the Government extended duty-free sales to EU-bound passengers at UK ports and airports for the first time in over 20 years. This is a significant boost to all ports, airports and international rail terminals in England, Scotland and Wales, including smaller regional airports and rail hubs, which were not able to offer duty-free to the EU before.
The Government also introduced personal allowances for passengers entering Great Britain from the EU. During the consultation stakeholders expressed concerns about this change, particularly those that deal with large volumes of EU passengers travelling to Great Britain in a vehicle by ferry or train, given many passengers were used to bringing back unlimited amounts of goods from the EU. The Government therefore used its freedoms from EU rules to significantly increase alcohol allowances for all passengers. This enables visitors to bring in, for example, three crates of beer, two cases of wine and one case of sparkling wine, without having to pay the relevant taxes, with Great Britain having one of the most generous allowances in the world.
Asked by: Ben Bradshaw (Labour - Exeter)
Question to the HM Treasury:
To ask the Chancellor of the Exchequer, in the context of personal allowances for bringing excise goods into the UK for personal use, what recent estimate his Department has made of the average value of (a) 42 litres of beer, (b) 18 litres of still wine, (c) four litres of spirits and other liquors with over 22 per cent alcohol content and (d) nine litres of sparkling wine and fortified wine up with up to 22 per cent alcohol content.
Answered by James Cartlidge - Minister of State (Ministry of Defence)
HMRC does not hold values for the average price of alcohol brought into the UK under the personal allowance.
Asked by: Stella Creasy (Labour (Co-op) - Walthamstow)
Question to the HM Treasury:
To ask the Chancellor of the Exchequer, with reference to the Retained EU Law (Revocation and Reform) Bill, whether he plans to (a) revoke, (b) replace or (c) retain the Beer Regulations 1993.
Answered by James Cartlidge - Minister of State (Ministry of Defence)
Tax matters, including the Beer Regulations 1993, are matters for HM Treasury and are kept under constant review, with any announcements made at fiscal events.
Now that the UK has left the EU and is free to set its own excise rules, the Government is undertaking the biggest reform of alcohol duties for over 140 years. The new simplified alcohol duty system, based on the principle of taxing alcohol by strength, will be implemented from 1 August 2023. We are introducing Draught Relief, reducing the duty on draught beer and cider by 5%, a measure not possible when we were members of the EU. This will directly support community pubs as over 75% of their sales come from beer and cider.
Asked by: Charlotte Nichols (Labour - Warrington North)
Question to the Department for Business, Energy and Industrial Strategy:
To ask the Secretary of State for Business, Energy and Industrial Strategy, what recent assessment he has made of the rate of closure of small and independent breweries in the UK in the last 6 months.
Answered by Kevin Hollinrake - Minister of State (Department for Business and Trade)
This Department sponsors the hospitality sector and assesses the state of that sector on an ongoing basis. We also work closely with DEFRA on support for key supply chain companies, including the UK’s small and independent breweries, and maintain regulator contact with the Society of Independent Brewers.
The Government recognises hospitality businesses are facing higher costs driven by global factors, including high energy and cost of living pressures. The Energy Bill Relief Scheme ensures that businesses are protected from excessively high energy bills over the winter period.
My Rt. Hon. Friend Mr Chancellor of the Excheuquer recently announced in his Autumn Statement a range of measures to support firms with business rates worth £13.6 billion over the next 5 years, including increased and extended Retail, Hospitality and Leisure (RHL) relief.
Asked by: Charlotte Nichols (Labour - Warrington North)
Question to the Department for Business, Energy and Industrial Strategy:
To ask the Secretary of State for Business, Energy and Industrial Strategy, what support he plans to provide to (a) pubs, (b) social clubs (c) breweries and (d) cider and perry producers for the cost of energy once the Energy Bill Relief Scheme ends; and if he will make a statement.
Answered by Graham Stuart
HMT is currently conducting a review of the Energy Bill Relief Scheme and evidence from care providers is included in that review. The Government cannot confirm which sectors will receive further support after 31st March 2023 until the end of the review, which will report by the end of this year.
Asked by: Barry Sheerman (Labour (Co-op) - Huddersfield)
Question to the HM Treasury:
To ask the Chancellor of the Exchequer, if he will make an assessment of the potential merits of reducing (a) beer duty and (b) other alcohol duties for pubs.
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.
Asked by: Fabian Hamilton (Labour - Leeds North East)
Question to the HM Treasury:
To ask the Chancellor of the Exchequer, what discussions he has had with the Secretary of State for Business, Energy and Industrial Strategy on the potential merits of reinstating the freeze in alcohol duty for draught beer and cider.
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.
The next steps of the Alcohol Duty Review announced in the Growth Plan will continue as planned. This includes the introduction of the new lower duty rate for draught beer and cider due to be implemented from 1 August 2023.
Asked by: Fabian Hamilton (Labour - Leeds North East)
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 the beer and pubs sector with energy bills beyond the initial six-month period of Government financial support.
Answered by Kevin Hollinrake - Minister of State (Department for Business and Trade)
The Government has committed to carrying out a review of the Energy Bill Relief Scheme by the end of the year to inform decisions on future support. We cannot confirm which sectors will receive further support after 31st March 2023 until the review has concluded.
Asked by: Rupa Huq (Labour - Ealing Central and Acton)
Question to the HM Treasury:
To ask the Chancellor of the Exchequer, whether he has made an assessment of the potential merits of a reduction of VAT on all sales of alcohol and food to protect pubs during the cost of living crisis.
Answered by Victoria Atkins - Secretary of State for Health and Social Care
The VAT reduced rate for the hospitality sector was a temporary measure designed to support the cash flow and viability of sectors that have been severely affected by COVID-19. It was appropriate that as restrictions were lifted and demand for goods and services in these sectors increased, the temporary tax reliefs were first reduced and then removed.
There are no current plans to reduce the rate of VAT on food or alcohol. VAT is the UK’s third largest tax, and is forecast to raise £154 billion in 2022/23, helping to fund key spending priorities. In addition, this request should be viewed in the context of over £50 billion of requests for relief from VAT received since the EU referendum. Nevertheless, the Government keeps all taxes under review.
The Government understands that many businesses, including pubs, are suffering as a result of the energy crisis. Through the Energy Bill Relief Scheme, the Government will provide a discount on wholesale gas and electricity prices for all non-domestic consumers until 31 March 2023. The Government intends to provide targeted support to the most vulnerable businesses after this winter.
The Government has also introduced a new draught relief from 1 August 2022 as part of its reform of alcohol duties. This provides a lower duty rate for alcohol that is sold in pubs, provided it fulfils the eligibility criteria of being below 8.5% ABV and sold in containers of 20 litres or more. It will mean, for example, that the duty rate for eligible beer and cider will be approximately 5% lower than the standard rate and will therefore provide long-term support for pubs.