Asked by: Patricia Gibson (Scottish National Party - North Ayrshire and Arran)
Question to the HM Treasury:
To ask the Chancellor of the Exchequer, what consideration has been accorded to new rules for alcohol excise duty in order to ensure this will not unfairly and disproportionately place a greater burden on the UK's wine industry.
Answered by Helen Whately - Shadow Secretary of State for Work and Pensions
The reforms announced at the Budget will produce an alcohol duty system that is overall simpler, fairer and healthier.
The Government believes it is appropriate to charge different rates of duty on drinks based on their alcoholic strength, with stronger drinks paying more duty and lower ABV drinks paying less duty. To minimise differences between categories of drinks, for the first time all products at 8.5% ABV or above will pay the same rate of duty regardless of the product type. This will also be true of products below 3.5% ABV. The existing system of taxing wines above 22% ABV in line with spirits on the basis of their pure alcohol content will continue. The Government also believes it is right to move wine to be taxed in proportion to its strength, as is already the case for beer and spirits. These reforms will result in lighter still wines below 11.5% ABV and many sparkling wines becoming cheaper, while higher strength still wines will pay more duty.
The Government is continuing to engage with industry, and industry members are encouraged to respond to the alcohol review consultation before the deadline of 30 January 2022.
Asked by: Patricia Gibson (Scottish National Party - North Ayrshire and Arran)
Question to the HM Treasury:
To ask the Chancellor of the Exchequer, what steps he has taken to ensure that new rules for alcohol excise duty will not disproportionately burden the UK's wine industry.
Answered by Helen Whately - Shadow Secretary of State for Work and Pensions
The reforms announced at the Budget will produce an alcohol duty system that is overall simpler, fairer and healthier.
The Government believes it is appropriate to charge different rates of duty on drinks based on their alcoholic strength, with stronger drinks paying more duty and lower ABV drinks paying less duty. To minimise differences between categories of drinks, for the first time all products at 8.5% ABV or above will pay the same rate of duty regardless of the product type. This will also be true of products below 3.5% ABV. The existing system of taxing wines above 22% ABV in line with spirits on the basis of their pure alcohol content will continue. The Government also believes it is right to move wine to be taxed in proportion to its strength, as is already the case for beer and spirits. These reforms will result in lighter still wines below 11.5% ABV and many sparkling wines becoming cheaper, while higher strength still wines will pay more duty.
The Government is continuing to engage with industry, and industry members are encouraged to respond to the alcohol review consultation before the deadline of 30 January 2022.
Asked by: Patricia Gibson (Scottish National Party - North Ayrshire and Arran)
Question to the HM Treasury:
To ask the Chancellor of the Exchequer, what recent assessment he has made of the equity of taxation based on ABV percentage of the product in the new alcohol excise duty regulations on wine importers.
Answered by Helen Whately - Shadow Secretary of State for Work and Pensions
The reforms announced at the Budget will produce an alcohol duty system that is overall simpler, fairer and healthier.
The Government believes it is appropriate to charge different rates of duty on drinks based on their alcoholic strength, with stronger drinks paying more duty and lower ABV drinks paying less duty. To minimise differences between categories of drinks, for the first time all products at 8.5% ABV or above will pay the same rate of duty regardless of the product type. This will also be true of products below 3.5% ABV. The existing system of taxing wines above 22% ABV in line with spirits on the basis of their pure alcohol content will continue. The Government also believes it is right to move wine to be taxed in proportion to its strength, as is already the case for beer and spirits. These reforms will result in lighter still wines below 11.5% ABV and many sparkling wines becoming cheaper, while higher strength still wines will pay more duty.
The Government is continuing to engage with industry, and industry members are encouraged to respond to the alcohol review consultation before the deadline of 30 January 2022.
Asked by: Patricia Gibson (Scottish National Party - North Ayrshire and Arran)
Question to the HM Treasury:
To ask the Chancellor of the Exchequer, for what reason the Government's proposed reforms to alcohol excise duty do not apply the same rate to all categories of alcoholic drinks; and what assessment his Department has made of the impact of those reforms on the wine industry.
Answered by Helen Whately - Shadow Secretary of State for Work and Pensions
The reforms announced at the Budget will produce an alcohol duty system that is overall simpler, fairer and healthier.
The Government believes it is appropriate to charge different rates of duty on drinks based on their alcoholic strength, with stronger drinks paying more duty and lower ABV drinks paying less duty. To minimise differences between categories of drinks, for the first time all products at 8.5% ABV or above will pay the same rate of duty regardless of the product type. This will also be true of products below 3.5% ABV. The existing system of taxing wines above 22% ABV in line with spirits on the basis of their pure alcohol content will continue. The Government also believes it is right to move wine to be taxed in proportion to its strength, as is already the case for beer and spirits. These reforms will result in lighter still wines below 11.5% ABV and many sparkling wines becoming cheaper, while higher strength still wines will pay more duty.
The Government is continuing to engage with industry, and industry members are encouraged to respond to the alcohol review consultation before the deadline of 30 January 2022.
Asked by: Patricia Gibson (Scottish National Party - North Ayrshire and Arran)
Question to the HM Treasury:
To ask the Chancellor of the Exchequer, what plans he has to raise the High Income Child Benefit Charge (HICBC) threshold; and what recent assessment she has made of the impact of that threshold on families with one working parent on a low to average income.
Answered by Simon Clarke
The Government is committed to managing the public finances in a disciplined and responsible way by targeting support where it is most needed.
The adjusted net income threshold of £50,000 only affects a minority of individuals, with comparatively high incomes. Individuals claiming Child Benefit with average and low incomes are not liable to pay HICBC. If a claimant lives with a partner earning above £50,000, their partner will be liable to pay the charge.
The Government therefore believes that the current threshold for HICBC remains the best option at present. As with all elements of tax policy, the Government keeps this under review.