Asked by: Mike Amesbury (Independent - Runcorn and Helsby)
Question to the HM Treasury:
To ask the Chancellor of the Exchequer, what assessment his Department has made of the potential impact of the classification of flavoured cider being classified as wine; what comparative assessment his Department has made of the impact on cider breweries in relation to 4 per cent ABV flavoured cider, which has a duty charge of approximately 90p/litre, compared with the standard rate of cider which is approximately 40p/litre; and if he will make it his policy to classify flavoured cider as standard cider.
Answered by Helen Whately - Shadow Secretary of State for Work and Pensions
At Autumn Budget 2021, the Chancellor announced a number of reforms to modernise and improve the tax system for cider from February 2023.
As part of this, the Government intends to move to a taxation system which taxes cider on the basis of its alcohol content. This will result in higher strength ciders – which are currently undertaxed – paying duty in proportion to strength. The Treasury considers the impact this will have on business decision-making difficult to estimate, as different businesses will have different business models. We will continue to engage with industry as our review progresses and value feedback on this point.
Regarding flavoured ciders, the Government has decided to keep the existing cider category and its substantially lower rate to remain focused on traditional cider, recognising the part cider producers play in local economies and the cultural value attached to cider. Therefore, there are no plans to equalise flavoured and non-flavoured cider duty rates at this stage.
Further detail about the impact of our alcohol duty reforms on cidermakers, including breweries that produce cider, will be included in a tax information and impact note when the policy is final, or near final, in the usual way.
Asked by: Mike Amesbury (Independent - Runcorn and Helsby)
Question to the HM Treasury:
To ask the Chancellor of the Exchequer, with reference to the Small Brewers Relief Scheme, what assessment his Department has made of the potential impact of increased tax bills on breweries producing 2,500HL and 5,000HL per year.
Answered by Helen Whately - Shadow Secretary of State for Work and Pensions
The Government has announced a number of changes to the way that small brewers receive relief from alcohol duty, in order to remove barriers to growth and reduce market distortions. As part of this, the Government has announced a new Small Producer Relief which will incorporate changes to the existing Small Brewers Relief, as set out in its response to a technical consultation on 30 November 2021.
The Government will make a range of adjustments to the existing scheme, including lowering the rate of increase in marginal costs as brewers expand and grow. This will remove the ‘cliff-edge’ which small brewers have highlighted as a concern for many years. Overall, this will invest a further £15 million to the existing £65 million spent each year on craft brewing via the Small Brewers Relief scheme.
Asked by: Mike Amesbury (Independent - Runcorn and Helsby)
Question to the HM Treasury:
To ask the Chancellor of the Exchequer, if he will make it his policy to expand the draft duty rate of beer to include containers from 20 litres.
Answered by Helen Whately - Shadow Secretary of State for Work and Pensions
Following the close of our alcohol duty review consultation on 30 January 2022, the Government is now analysing responses and is continuing to engage with industry on both points.
The Government understands that some cidermakers are interested in increasing the minimum juice content. However, others have raised concerns that this would disrupt business as usual for some cidermakers and may incentivise producers to import apples cheaply from overseas. It is therefore important we continue to explore different arguments before making any final decisions.
We are also engaging with brewers on the qualifying criteria for draught relief. While it is our intention for the relief to apply to a range of brewers, we must ensure that the relief remains targeted on pubs and other hospitality venues. This is to ensure that drinks benefiting from the relief are those used by venues rather than for personal use by consumers.
We are continuing to consult on these proposals and will provide further updates on the alcohol duty review in due course.
Asked by: Mike Amesbury (Independent - Runcorn and Helsby)
Question to the HM Treasury:
To ask the Chancellor of the Exchequer, If he will make it his policy that a minimum 85 per cent juice threshold is required for a product to be taxed and sold as cider.
Answered by Helen Whately - Shadow Secretary of State for Work and Pensions
Following the close of our alcohol duty review consultation on 30 January 2022, the Government is now analysing responses and is continuing to engage with industry on both points.
The Government understands that some cidermakers are interested in increasing the minimum juice content. However, others have raised concerns that this would disrupt business as usual for some cidermakers and may incentivise producers to import apples cheaply from overseas. It is therefore important we continue to explore different arguments before making any final decisions.
We are also engaging with brewers on the qualifying criteria for draught relief. While it is our intention for the relief to apply to a range of brewers, we must ensure that the relief remains targeted on pubs and other hospitality venues. This is to ensure that drinks benefiting from the relief are those used by venues rather than for personal use by consumers.
We are continuing to consult on these proposals and will provide further updates on the alcohol duty review in due course.
Asked by: Mike Amesbury (Independent - Runcorn and Helsby)
Question to the HM Treasury:
To ask the Chancellor of the Exchequer, what his timetable is for publishing details on the qualification requirements for vulnerable households to be able to access the £144 million of financial support for vulnerable households announced on 3 February 2022.
Answered by Simon Clarke
The Department for Levelling Up, Housing and Communities has recently published guidance for Local Authorities on the administration of both the council tax rebate for households in bands A-D, and the discretionary funding.
Asked by: Mike Amesbury (Independent - Runcorn and Helsby)
Question to the HM Treasury:
To ask the Chancellor of the Exchequer, what assessment his Department has made of the eligibility for the £150 rebate for (a) renters who are not liable for the council tax for their property but who do pay for their energy and (b) households who move from council tax bands E to H to A to D after April 2022.
Answered by Simon Clarke
The Department for Levelling Up, Housing and Communities has published guidance on eligibility for the Council Tax Energy Rebate. This includes the approach to rented properties and the applicable date for determining eligibility. Households in bands E-H that are not eligible for the rebate automatically may instead be eligible for support from their local authority through the discretionary funding.
Asked by: Mike Amesbury (Independent - Runcorn and Helsby)
Question to the HM Treasury:
To ask the Chancellor of the Exchequer, what assessment his Department has made of the effectiveness of the payment of the £150 council tax rebate to people who do not pay their council tax via direct debit; and what steps he is taking to ensure that all eligible people receive the rebate.
Answered by Simon Clarke
The Department for Levelling Up, Housing and Communities is continuing to engage with local authorities on the implementation of the council tax energy rebate. This includes the approach to households in bands A-D that do not pay by direct debit, or do not pay council tax because they are in receipt of Local Council Tax Support.
Asked by: Mike Amesbury (Independent - Runcorn and Helsby)
Question to the HM Treasury:
To ask the Chancellor of the Exchequer, what assessment his Department has made of the adequacy of the financial support provided to local authorities to assist with the administration of the £150 council tax rebate.
Answered by Simon Clarke
The Department for Levelling Up, Housing and Communities continues to engage with local authorities on the implementation of the council tax energy rebate. Local authorities will be provided with additional new burdens funding to administer the rebate and the associated discretionary funding.
Asked by: Mike Amesbury (Independent - Runcorn and Helsby)
Question to the HM Treasury:
To ask the Chancellor of the Exchequer, what assessment his Department has made of the potential merits of enabling households to opt out of the £200 discount on their energy bills.
Answered by Helen Whately - Shadow Secretary of State for Work and Pensions
All domestic electricity customers in Great Britain will receive a £200 reduction in their electricity costs from this October. This will be delivered via energy suppliers and will be clearly identifiable as a line item on electricity bills.
The reduction in costs will help people with the increase in energy bills by spreading the increased costs over a few years, so they are more manageable for households.