Asked by: Philip Davies (Conservative - Shipley)
Question to the HM Treasury:
To ask the Chancellor of the Exchequer, what estimate he has made of the potential revenue lost from illegal gambling.
Answered by Nigel Huddleston - Financial Secretary (HM Treasury)
HM Revenue and Customs (HMRC) estimates the size of the tax gap, which is the difference between the amount of tax that should, in theory, be paid to HMRC, and what is actually paid. The tax gap statistics are published annually and are available at: Measuring tax gaps - Measuring tax gaps 2023 edition: tax gap estimates for 2021 to 2022 - GOV.UK (www.gov.uk)
HMRC does not separately estimate a betting and gaming duty tax gap; it forms part of the ‘other excise duties’ tax gap, namely betting and gaming, cider and perry, spirits-based ready-to-drink beverages and wine duties gaps.
Asked by: Claire Hanna (Social Democratic & Labour Party - Belfast South)
Question to the HM Treasury:
To ask the Chancellor of the Exchequer, if he will reduce the duty rate for draught beer and cider.
Answered by Gareth Davies - Exchequer Secretary (HM Treasury)
The Government is unable to speculate on tax matters outside of fiscal events.
As with all taxes, the Government keeps the alcohol duty system under review during its yearly Budget process.
Asked by: Daisy Cooper (Liberal Democrat - St Albans)
Question to the HM Treasury:
To ask the Chancellor of the Exchequer, whether his Department has received representations from (a) CAMRA and (b) organisers of beer and cider festivals on the effect of the draught relief provisions in the Finance (No. 2) Act 2023 on their ability to sell alcoholic drinks in sealed containers of less than 20 litres during such events.
Answered by Gareth Davies - Exchequer Secretary (HM Treasury)
My officials and I have engaged extensively with members of the beer and cider industries, including CAMRA, throughout the policy development of the alcohol reforms. This includes discussions about Draught Relief.
The core objective of Draught Relief is to recognise the cultural importance of pubs and other on-trade venues as community hubs and to encourage responsible drinking in supervised settings.
The current policy does not prevent pubs and other on-trade venues from selling takeaway pints. Businesses have the ability to purchase full duty paid containers should they wish to decant from the container and sell beverages for their customers to consume off-site.
Asked by: Daisy Cooper (Liberal Democrat - St Albans)
Question to the HM Treasury:
To ask the Chancellor of the Exchequer, whether he plans to extend the draught beer relief to takeaway sales by licensed premises whose primary business is the sale of draught products for consumption on the premises.
Answered by Gareth Davies - Exchequer Secretary (HM Treasury)
My officials and I have engaged extensively with members of the beer and cider industries, including CAMRA, throughout the policy development of the alcohol reforms. This includes discussions about Draught Relief.
The core objective of Draught Relief is to recognise the cultural importance of pubs and other on-trade venues as community hubs and to encourage responsible drinking in supervised settings.
The current policy does not prevent pubs and other on-trade venues from selling takeaway pints. Businesses have the ability to purchase full duty paid containers should they wish to decant from the container and sell beverages for their customers to consume off-site.
Asked by: Dean Russell (Conservative - Watford)
Question to the Department for Business and Trade:
To ask the Secretary of State for Business and Trade, what steps she has taken to implement her hospitality strategy policies on improving the resilience of (a) pubs, (b) brewers and (c) other hospitality businesses in (i) Watford and (ii) the UK.
Answered by Kevin Hollinrake - Minister of State (Department for Business and Trade)
We are working closely with the Hospitality Sector Council to deliver the 2021 Hospitality Strategy, and brought forward a Delivery Report on 1 March to show progress made. Business-led working groups are considering ways to improve business resilience, including innovation and sustainable practices, energy efficiency, jobs and skills, local partnerships, and improving access to finance.
The Government continues to support businesses with their costs, and we are legislating to increase the new Draught Relief from 5% to 9.2% for beer and cider draught products and from 20% to 23% for wine, spirits based and other fermented draught products.
Asked by: David Warburton (Independent - Somerton and Frome)
Question to the HM Treasury:
To ask the Chancellor of the Exchequer, if he will include additional support for (a) pubs, (b) social clubs, (c) breweries and (d) cider producers in the Spring Budget.
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.
As announced on 19 December, any changes to alcohol duty announced at Spring Budget 2023 will not take effect until 1 August 2023. This is to align with the date historic reforms for the alcohol duty system come in and amounts to an effective six month extension to the current duty freeze.
The alcohol duty reforms will include a new Draught Relief which will cut the level of duty on draught products sold in the on trade (i.e., pubs, social clubs), and a new Small Producer Relief will for the first time give craft cidermakers reduced rates as they grow their business. This will replace the existing Small Brewers Relief scheme, which has been reformed to remove cliff-edges and give craft brewers relief on their lower ABV beers too. The final design of the reforms will be published at Spring Budget.
Asked by: Simon Jupp (Conservative - East Devon)
Question to the HM Treasury:
To ask the Chancellor of the Exchequer, what fiscal steps he is taking through the tax system to help support small cider producers.
Answered by James Cartlidge - Minister of State (Ministry of Defence)
The Government is introducing comprehensive alcohol duty reforms from 1 August this year, which will support small cider producers through the introduction of the new Small Producer Relief, providing a tapered duty discount which helps small beer and cider producers to grow and thrive.
The Government is also providing a duty discount on draught cider sold in pubs, whilst equalising the treatment of fruit ciders with beer. Further, ciders between 3.5% and 8.5% ABV will continue to benefit from a lower duty rate than other categories of alcohol to support their transition to the new duty system.
Asked by: Caroline Lucas (Green Party - Brighton, Pavilion)
Question to the HM Treasury:
To ask the Chancellor of the Exchequer, if he will make it his policy to (a) reduce duty charged on draught beer and cider served in pubs and taprooms by 20 per cent from August 2023, (b) introduce a lower business rates multiplier for hospitality businesses in recognition of their community value and (c) increase support with energy bills for beer and pub businesses from April 2023; and if he will make a statement.
Answered by James Cartlidge - Minister of State (Ministry of Defence)
On 19 December, I announced an extension to the current alcohol duty freeze to 1 August 2023, to align any uprating decision with the implementation of the alcohol duty reforms and provide certainty to businesses. The Chancellor will confirm the alcohol duty rates from 1 August 2023 at Spring Budget.
Businesses in the retail, hospitality and leisure sectors will receive a tax cut worth over £2 billion in 2023-24. Eligible properties will receive 75% off their business rates bill, up to a cap of £110,000 per business.
Through the new Energy Bills Discount Scheme, all eligible businesses will receive a discount on high energy bills until 31 March 2024. The Government provided an unprecedented package of support through this winter, and we have been clear that such levels of support were time-limited and intended as a bridge to allow businesses to adapt.
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 cider ranked under the Energy and Trade Intensive Industries scheme.
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: 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.