Asked by: Martin Docherty-Hughes (Scottish National Party - West Dunbartonshire)
Question to the HM Treasury:
To ask the Chancellor of the Exchequer, what assessment he has made of the implications for his policies of the Scotch Whisky industry’s investment in the UK economy in the last five years.
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. When setting alcohol duty rates through the usual Budget process, the Government aims to balance the impact on businesses with its public health objectives, and to ensure that the public finances are on a sustainable footing.
Any impacts from changes to the duty rates made at the Spring Budget 2023 will be set out in the Tax Information and Impact Notes published following the Budget.
The spirits industry, including Scotch Whisky, has benefitted from spirits duty being cut or frozen for nine out of the last ten fiscal events. Spirits duty is now at its lowest level in real terms since 1918. In addition to this, on 19 December the Government extended the current alcohol duty freeze by six months to align with the implementation of the alcohol duty reforms and reduce the impact of the duty changes on businesses.
Asked by: Martin Docherty-Hughes (Scottish National Party - West Dunbartonshire)
Question to the HM Treasury:
To ask the Chancellor of the Exchequer, what assessment he has made of the potential impact of changes in alcohol duty rates from 1 August 2023 on inflation.
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. When setting alcohol duty rates through the usual Budget process, the Government aims to balance the impact on businesses with its public health objectives, and to ensure that the public finances are on a sustainable footing.
Any impacts from changes to the duty rates made at the Spring Budget 2023 will be set out in the Tax Information and Impact Notes published following the Budget.
The spirits industry, including Scotch Whisky, has benefitted from spirits duty being cut or frozen for nine out of the last ten fiscal events. Spirits duty is now at its lowest level in real terms since 1918. In addition to this, on 19 December the Government extended the current alcohol duty freeze by six months to align with the implementation of the alcohol duty reforms and reduce the impact of the duty changes on businesses.
Asked by: Martin Docherty-Hughes (Scottish National Party - West Dunbartonshire)
Question to the HM Treasury:
To ask the Chancellor of the Exchequer, if he will make an assessment with Cabinet colleagues of the impact of scotch whisky distilleries on (a) the local economy and (b) communities in Scotland.
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. When setting alcohol duty rates through the usual Budget process, the Government aims to balance the impact on businesses with its public health objectives, and to ensure that the public finances are on a sustainable footing.
Any impacts from changes to the duty rates made at the Spring Budget 2023 will be set out in the Tax Information and Impact Notes published following the Budget.
The spirits industry, including Scotch Whisky, has benefitted from spirits duty being cut or frozen for nine out of the last ten fiscal events. Spirits duty is now at its lowest level in real terms since 1918. In addition to this, on 19 December the Government extended the current alcohol duty freeze by six months to align with the implementation of the alcohol duty reforms and reduce the impact of the duty changes on businesses.
Asked by: Martin Docherty-Hughes (Scottish National Party - West Dunbartonshire)
Question to the HM Treasury:
To ask the Chancellor of the Exchequer, what assessment he has made of the compatibility of alcohol taxation reforms with the Government's commitment that reform will support the Scotch whisky industry and the jobs its maintains.
Answered by Helen Whately - Minister of State (Department of Health and Social Care)
The Government has announced several changes to alcohol duty that will support the Scotch Whisky sector. At the Budget, spirits duty was frozen, making freezes continuous since 2017. As part of our alcohol duty review, the Government intends to move to a system where all products are taxed in reference to the litres of pure alcohol they contain, making the taxation of other products more consistent with Scotch. Above 8.5% ABV there is to be no differentiation between product categories, providing a more level playing field between spirits and other products. These changes will narrow the difference between Scotch, wines and high-strength ciders.
Further detail about the impact of reforms on consumers will be included in a tax information and impact note when the policy is final, or near final, in the usual way.
Asked by: Martin Docherty-Hughes (Scottish National Party - West Dunbartonshire)
Question to the HM Treasury:
To ask the Chancellor of the Exchequer, what comparative assessment he has made of the effect on the costs to (a) beer and (b) whisky consumers of proposed reforms to alcohol taxation.
Answered by Helen Whately - Minister of State (Department of Health and Social Care)
The Government has announced several changes to alcohol duty that will support the Scotch Whisky sector. At the Budget, spirits duty was frozen, making freezes continuous since 2017. As part of our alcohol duty review, the Government intends to move to a system where all products are taxed in reference to the litres of pure alcohol they contain, making the taxation of other products more consistent with Scotch. Above 8.5% ABV there is to be no differentiation between product categories, providing a more level playing field between spirits and other products. These changes will narrow the difference between Scotch, wines and high-strength ciders.
Further detail about the impact of reforms on consumers will be included in a tax information and impact note when the policy is final, or near final, in the usual way.
Asked by: Martin Docherty-Hughes (Scottish National Party - West Dunbartonshire)
Question to the HM Treasury:
To ask the Chancellor of the Exchequer, what steps he plans to take to support the Scotch whisky industry through proposals to reform alcohol taxation.
Answered by Helen Whately - Minister of State (Department of Health and Social Care)
The Government has announced several changes to alcohol duty that will support the Scotch Whisky sector. At the Budget, spirits duty was frozen, making freezes continuous since 2017. As part of our alcohol duty review, the Government intends to move to a system where all products are taxed in reference to the litres of pure alcohol they contain, making the taxation of other products more consistent with Scotch. Above 8.5% ABV there is to be no differentiation between product categories, providing a more level playing field between spirits and other products. These changes will narrow the difference between Scotch, wines and high-strength ciders.
Further detail about the impact of reforms on consumers will be included in a tax information and impact note when the policy is final, or near final, in the usual way.
Asked by: Martin Docherty-Hughes (Scottish National Party - West Dunbartonshire)
Question to the HM Treasury:
To ask the Chancellor of the Exchequer, whether the £125 million for hospices announced on 23 November 2020 will result in Barnett consequentials,; and what estimate he has made of how much of that funding will be allocated to the Scottish Government.
Answered by Steve Barclay - Secretary of State for Environment, Food and Rural Affairs
To give the Scottish Government the certainty to plan and deliver their coronavirus response, we have provided them with an upfront guarantee that they will receive at least £8.2bn in additional funding this year on top of their Spring Budget funding.
Any additional funding provided to the Department of Health and Social Care for hospices will result in Barnett consequentials for the Scottish Government that will contribute towards the guaranteed £8.2bn.
Asked by: Martin Docherty-Hughes (Scottish National Party - West Dunbartonshire)
Question to the HM Treasury:
To ask the Chancellor of the Exchequer, with reference to the Written Ministerial Statement entitled Finance Bill 2020-21 draft legislation and tax documents of 21 July 2020, what assessment he has made on the effect on the operation of the Small Brewers Relief scheme of converting it to a cash basis.
Answered by Kemi Badenoch - President of the Board of Trade
Converting the Small Brewers Relief (SBR) scheme to a cash basis will enable the Treasury to review the value of the relief periodically, ensuring it maintains a fair and appropriate value. The Treasury will consult in the Autumn on this and other technical measures relating to SBR.
Asked by: Martin Docherty-Hughes (Scottish National Party - West Dunbartonshire)
Question to the HM Treasury:
To ask the Chancellor of the Exchequer, what analysis he has made of the possible different methods of taper that could be used for the Small Brewers Relief scheme.
Answered by Kemi Badenoch - President of the Board of Trade
There are several methods employed internationally for tapering small producer reliefs. The Government will undertake a further consultation on its reforms of Small Brewers Relief later this autumn, which will consider technical matters such as this.
Asked by: Martin Docherty-Hughes (Scottish National Party - West Dunbartonshire)
Question to the HM Treasury:
To ask the Chancellor of the Exchequer, when he will plans to announce a final consequential funding figure for hospices in Scotland in respect of the £200 million allocated to hospices in April, May, June as part of the UK Government’s £750 million coronavirus funding for charities, and the further funding provided in July 2020.
Answered by Steve Barclay - Secretary of State for Environment, Food and Rural Affairs
On 24 July, we made an unprecedented upfront guarantee to the Scottish government. We guaranteed that they will receive at least £6.5bn in additional resource funding this year on top of their Spring Budget funding. This certainty ensures they can plan and deliver their coronavirus response. It is up to the Scottish government to allocate this funding across their devolved responsibilities as they see fit, including to hospices.