Asked by: David Linden (Scottish National Party - Glasgow East)
Question to the HM Treasury:
To ask the Chancellor of the Exchequer, what comparative assessment he has made of the potential implications for his policies of the way his Department's plans to tax alcohol by product strength with the guidance of the Chief Medical Officer which does not make a distinction in how units of alcohol are consumed in respect of responsible drinking.
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, and is increasing duty on higher ABV products, such as strong ‘white’ cider and fortified wine.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 is therefore addressing these concerns.
Asked by: David Linden (Scottish National Party - Glasgow East)
Question to the HM Treasury:
To ask the Chancellor of the Exchequer, what assessment he has made of the potential implications for his policies that a 4 per cent alcohol by volume pint of beer or cider contains more alcohol than a Scotch Whisky cocktail but raises less duty under his Department's reform proposals; and if he will make a statement.
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, and is increasing duty on higher ABV products, such as strong ‘white’ cider and fortified wine.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 is therefore addressing these concerns.
Asked by: David Linden (Scottish National Party - Glasgow East)
Question to the HM Treasury:
To ask the Chancellor of the Exchequer, pursuant to the Answer of 7 February 2022 to Question 119778 on the Energy Bill Discount Scheme, for what reason that Answer did not provide a definition of the word discount.
Answered by Helen Whately - Minister of State (Department of Health and Social Care)
The Government is providing a £200 reduction on bills from October for all households in Great Britain with a domestic electricity meter, to reduce pressure on energy bills this year when global gas prices are high. This will help households manage the increase in energy bills by spreading the increased costs over a few years.
The energy bill reduction will give households time for their finances to adjust rather than having to deal with the price increase up front and will provide relief to millions of households.
The £200 is a reduction on bills to be automatically recouped from people’s bills interest-free over the next five years. The aim of the policy is to effectively spread the worst of the extra costs of this year’s energy price shock over time.
The energy bill reduction will be delivered by energy suppliers and the government will consult on the details of the scheme.
Asked by: David Linden (Scottish National Party - Glasgow East)
Question to the HM Treasury:
To ask the Chancellor of the Exchequer, what his definition is of the word discount in the context of his announcement on 4 February 2022 of a £200 repayable sum to be deducted from domestic energy bills.
Answered by Helen Whately - Minister of State (Department of Health and Social Care)
This year, all domestic electricity customers will receive a discount on their bills worth £200. This is a reduction on the higher costs that many energy customers would otherwise face this year, with an unprecedented spike in international gas wholesale prices forcing an increase in the April 2022 price cap. This reduction will mean the effective average annual energy bill households face will fall from £1,971 to £1,771.
The aim of the policy is to effectively spread the worst of the extra costs of this year’s energy price shock over time. Therefore, the cost of the discount will be automatically recouped from people’s bills interest-free over the next five years, to minimise the financial pressure on consumers.
This reduction is also only one part of a wider package of measures to support households in 2022/23 – including the £150 non-repayable reduction in Council Tax bills for (English) households in Bands A-D, which will apply from April.