Asked by: Lord Brooke of Alverthorpe (Labour - Life peer)
Question to the HM Treasury:
To ask His Majesty's Government what plans they have (1) to review the proposed new alcohol duty bands, and (2) to increase the top band, so that the reforms will increase the yield to the Exchequer rather than reduce it, as presently forecast.
Answered by Baroness Penn - Minister on Leave (Parliamentary Under Secretary of State)
The next steps of the Alcohol Duty Review announced in the Growth Plan will continue as planned and will take effect from 1 August 2023.
The reforms are intended to improve the current system by making it simpler, more economically rational and less administratively burdensome on businesses.
The Government welcomed further views on aspects of Small Producer’s Relief and Draught Relief in a technical consultation which closed on 18 November 2022, to ensure stakeholders continue to be able to contribute to the reforms. The Government will respond to the consultation in due course.
Asked by: Lord Brooke of Alverthorpe (Labour - Life peer)
Question to the HM Treasury:
To ask Her Majesty's Government what assessment they have made of the conclusions and recommendations relating to global population growth in the report by Professor Sir Partha Dasgupta Final Report - The Economics of Biodiversity: The Dasgupta Review, published on 2 February.
Answered by Lord Agnew of Oulton
The independent Review explores a range of actions it argues are needed to protect the environment and our prosperity.
The Government will examine the Review’s findings closely, call on international partners to do the same, and will respond formally in due course.
Asked by: Lord Brooke of Alverthorpe (Labour - Life peer)
Question to the HM Treasury:
To ask Her Majesty's Government what plans they have to consider revenue-raising opportunities and consequential behavioural changes through the levying of taxes on online and television advertisements.
Answered by Lord Agnew of Oulton
The Government introduced a Digital Services Tax (DST) in April 2020, which is designed to ensure tech firms with UK user generated content pay their fair share of tax in the UK.
The DST applies to businesses that provide a social media platform, search engine or an online marketplace to UK users. The provision of these services includes the carrying on of any associated online advertising business.
The DST is a temporary measure until an appropriate international solution is in place.
Asked by: Lord Brooke of Alverthorpe (Labour - Life peer)
Question to the HM Treasury:
To ask Her Majesty's Government what plans they have to introduce a tax credit system after the COVID-19 pandemic similar to the post-war credits that were introduced after the Second World War.
Answered by Lord Agnew of Oulton
The Government keeps all aspects of the tax system under review; as we exit the current crisis, we will take stock of the economy and public finances and make the right decisions at that point.
Asked by: Lord Brooke of Alverthorpe (Labour - Life peer)
Question to the HM Treasury:
To ask Her Majesty's Government what assessment they have made of the impact on alcohol consumption from the changes in duty policy since 2012.
Answered by Earl of Courtown - Captain of the Queen's Bodyguard of the Yeomen of the Guard (HM Household) (Deputy Chief Whip, House of Lords)
HMRC publishes a Tax Information Impact Note explaining the impact of alcohol consumption, each time a duty rate is amended. Tax Information Impact Notes are published on GOV.UK website.
Asked by: Lord Brooke of Alverthorpe (Labour - Life peer)
Question to the HM Treasury:
To ask Her Majesty's Government what assessment they have made of the impact on the NHS of their decision to freeze duties on alcohol other than white cider.
Answered by Lord Bates
The costing of Budget measures includes only the direct consequences of those measures.
The government does not attempt to quantify the indirect effects of Budget measures, such as the impact on the NHS, as those are dependent on many dynamic factors that are not feasible to accurately model.
This is accordance with the methodology endorsed by the Office of Budget Responsibility.
HM Treasury does consult with the Department of Health, the NHS and other public health bodies on alcohol duties, and will continue to do so.
Asked by: Lord Brooke of Alverthorpe (Labour - Life peer)
Question to the HM Treasury:
To ask Her Majesty's Government whether, prior to the suspension of the alcohol duty escalator announced in the Budget Statement, they conducted a risk assessment of the effects and consequences for the NHS; and if so, what that risk assessment showed.
Answered by Lord Bates
The government ended the alcohol duty escalator for beer in 2013, and for cider, wine and spirits in 2014.
A Tax Impact and Information Note (TIIN) was published alongside these measures which set out the government’s assessment of the impacts of ending the beer duty escalator. The relevant TIINs for the 2013 changes are attached.
For the 2014 changes please see Section A63 of the Overview of Tax Legislation and Rates document which is also attached.
A separate assessment of the specific impact on the NHS was not undertaken.
Asked by: Lord Brooke of Alverthorpe (Labour - Life peer)
Question to the HM Treasury:
To ask Her Majesty’s Government whether they intend to include, within the recently announced review of VAT, a consideration of the levels of customs and excise duties applied to those drinks and foods which research suggests are most responsible for avoidable deaths and chronic illnesses; and whether they have any plans to introduce a hypothecated tax for the NHS.
Answered by Baroness Neville-Rolfe - Minister of State (Cabinet Office)
The terms of reference for the Office of Tax Simplification’s current VAT General Simplification Review are on gov.uk.
While the Government keeps all taxes under review, a fixed proportion of each class of NICs receipts (from employees, the self-employed and employers) is allocated directly to the NHS; this adds up to about 20% of NICs receipts. The rest of NHS funding comes from general taxation.
Asked by: Lord Brooke of Alverthorpe (Labour - Life peer)
Question to the HM Treasury:
To ask Her Majesty’s Government, further to the Written Answer by Lord Young of Cookham on 25 October (HL2200), whether they will consider using a more flexible and variable approach to setting VAT and Excise duties for different goods and services to improve the nation's health and wellbeing, after the UK leaves the EU.
Answered by Lord Young of Cookham
As I stated in my answer of 25 October (HL2200), until the UK has left the EU, we will remain a member of the EU with all the rights and obligations that membership entails.
The Government will work hard to get the best deal for Britain, including for VAT and excise, and is determined to make the most of the opportunities that are presented.
Asked by: Lord Brooke of Alverthorpe (Labour - Life peer)
Question to the HM Treasury:
To ask Her Majesty’s Government whether, in the light of Brexit, they are considering using a more flexible and variable approach to setting VAT and Excise duties for different goods and services to improve the nation's health and wellbeing.
Answered by Lord Young of Cookham
Until the UK has left the EU, we will remain a member of the EU with all the rights and obligations that membership entails.
The Government will work hard to get the best deal for Britain, including for VAT and excise, and is determined to make the most of the opportunities that are presented.