Asked by: Tim Loughton (Conservative - East Worthing and Shoreham)
Question to the HM Treasury:
To ask Mr Chancellor of the Exchequer, what fiscal steps his Department is taking to support the wine and spirits industry after the UK leaves the EU.
Answered by Andrew Jones
As for every Finance Bill measure, HMRC provided a Tax Impact Information Note which included an impact assessment of alcohol duty changes. This can be found online at:
https://www.gov.uk/government/publications/alcohol-duty-rate-changes/alcohol-duty-rate-changes
The government keeps all taxes under review at fiscal events, and we will consider this issue carefully as part of the Autumn Budget process. Any changes to alcohol duties need to take account of a wide range of factors, including the Exchequer impact, the impact on businesses and consumers, public health and the distributional impact of reform.
Until exit negotiations are concluded, the UK remains a full member of the European Union and all the rights and obligations of EU membership remain in force. We will seek to achieve the right deal for Britain and for the EU.
Asked by: Tim Loughton (Conservative - East Worthing and Shoreham)
Question to the HM Treasury:
To ask Mr Chancellor of the Exchequer, if he will make it his policy to halt the planned increases in wine and spirits duty.
Answered by Andrew Jones
As for every Finance Bill measure, HMRC provided a Tax Impact Information Note which included an impact assessment of alcohol duty changes. This can be found online at:
https://www.gov.uk/government/publications/alcohol-duty-rate-changes/alcohol-duty-rate-changes
The government keeps all taxes under review at fiscal events, and we will consider this issue carefully as part of the Autumn Budget process. Any changes to alcohol duties need to take account of a wide range of factors, including the Exchequer impact, the impact on businesses and consumers, public health and the distributional impact of reform.
Until exit negotiations are concluded, the UK remains a full member of the European Union and all the rights and obligations of EU membership remain in force. We will seek to achieve the right deal for Britain and for the EU.
Asked by: Tim Loughton (Conservative - East Worthing and Shoreham)
Question to the HM Treasury:
To ask Mr Chancellor of the Exchequer, if he will review the planned increases to the duty applied to wines and spirits in the November budget.
Answered by Andrew Jones
As for every Finance Bill measure, HMRC provided a Tax Impact Information Note which included an impact assessment of alcohol duty changes. This can be found online at:
https://www.gov.uk/government/publications/alcohol-duty-rate-changes/alcohol-duty-rate-changes
The government keeps all taxes under review at fiscal events, and we will consider this issue carefully as part of the Autumn Budget process. Any changes to alcohol duties need to take account of a wide range of factors, including the Exchequer impact, the impact on businesses and consumers, public health and the distributional impact of reform.
Until exit negotiations are concluded, the UK remains a full member of the European Union and all the rights and obligations of EU membership remain in force. We will seek to achieve the right deal for Britain and for the EU.
Asked by: Tim Loughton (Conservative - East Worthing and Shoreham)
Question to the HM Treasury:
To ask Mr Chancellor of the Exchequer, what tax liabilities would result from a 3.2 per cent increase in duty on UK wine and spirits for (a) UK consumers and (b) businesses.
Answered by Jane Ellison
The Government has made no independent assessment of the contribution of wine and spirits to the UK economy. However, HM Treasury engages with a wide variety of organisations, including the Wine and Spirits Trade Association, to understand developments in the wine and spirits markets.
Current and historic duty rates for wine and spirits can be found in HM Revenue and Customs’ (HMRC’s) published Alcohol Bulletin. This is available to view at: https://www.uktradeinfo.com/Statistics/Pages/TaxAndDutybulletins.aspx.
The Government keeps all taxes, including wine and spirits duties, under review. Evidence from stakeholders on the impact of potential changes will be considered as part of the Budget process. An indication of the fiscal effect of a one per cent increase in duty in 2017-18 on all alcoholic drinks is set out in the HMRC publication, Direct effects of illustrative tax changes. This is available to view at: https://www.gov.uk/government/uploads/system/uploads/attachment_data/file/571367/Nov16_Direct_effects_illustrative_tax_changes_bulletin_final.pdf. For small changes in duty, the one per cent ‘ready reckoner’ can be scaled up or down to derive a rough estimate of larger changes.
The legal incidence of the duty is on producers, but increased duties are passed through as higher retail prices. Higher duties are thus estimated to reduce alcohol consumption.
Asked by: Tim Loughton (Conservative - East Worthing and Shoreham)
Question to the HM Treasury:
To ask Mr Chancellor of the Exchequer, what assessment his Department has made of the potential effect of a two per cent reduction in duty on UK wine and spirits to the economy.
Answered by Jane Ellison
The Government has made no independent assessment of the contribution of wine and spirits to the UK economy. However, HM Treasury engages with a wide variety of organisations, including the Wine and Spirits Trade Association, to understand developments in the wine and spirits markets.
Current and historic duty rates for wine and spirits can be found in HM Revenue and Customs’ (HMRC’s) published Alcohol Bulletin. This is available to view at: https://www.uktradeinfo.com/Statistics/Pages/TaxAndDutybulletins.aspx.
The Government keeps all taxes, including wine and spirits duties, under review. Evidence from stakeholders on the impact of potential changes will be considered as part of the Budget process. An indication of the fiscal effect of a one per cent increase in duty in 2017-18 on all alcoholic drinks is set out in the HMRC publication, Direct effects of illustrative tax changes. This is available to view at: https://www.gov.uk/government/uploads/system/uploads/attachment_data/file/571367/Nov16_Direct_effects_illustrative_tax_changes_bulletin_final.pdf. For small changes in duty, the one per cent ‘ready reckoner’ can be scaled up or down to derive a rough estimate of larger changes.
The legal incidence of the duty is on producers, but increased duties are passed through as higher retail prices. Higher duties are thus estimated to reduce alcohol consumption.
Asked by: Tim Loughton (Conservative - East Worthing and Shoreham)
Question to the HM Treasury:
To ask Mr Chancellor of the Exchequer, by how much rates of duty for (a) wine and (b) spirits have risen in percentage terms since 2007.
Answered by Jane Ellison
The Government has made no independent assessment of the contribution of wine and spirits to the UK economy. However, HM Treasury engages with a wide variety of organisations, including the Wine and Spirits Trade Association, to understand developments in the wine and spirits markets.
Current and historic duty rates for wine and spirits can be found in HM Revenue and Customs’ (HMRC’s) published Alcohol Bulletin. This is available to view at: https://www.uktradeinfo.com/Statistics/Pages/TaxAndDutybulletins.aspx.
The Government keeps all taxes, including wine and spirits duties, under review. Evidence from stakeholders on the impact of potential changes will be considered as part of the Budget process. An indication of the fiscal effect of a one per cent increase in duty in 2017-18 on all alcoholic drinks is set out in the HMRC publication, Direct effects of illustrative tax changes. This is available to view at: https://www.gov.uk/government/uploads/system/uploads/attachment_data/file/571367/Nov16_Direct_effects_illustrative_tax_changes_bulletin_final.pdf. For small changes in duty, the one per cent ‘ready reckoner’ can be scaled up or down to derive a rough estimate of larger changes.
The legal incidence of the duty is on producers, but increased duties are passed through as higher retail prices. Higher duties are thus estimated to reduce alcohol consumption.
Asked by: Tim Loughton (Conservative - East Worthing and Shoreham)
Question to the HM Treasury:
To ask Mr Chancellor of the Exchequer, what recent assessment his Department has made of the value of the UK wine and spirits industry to the economy.
Answered by Jane Ellison
The Government has made no independent assessment of the contribution of wine and spirits to the UK economy. However, HM Treasury engages with a wide variety of organisations, including the Wine and Spirits Trade Association, to understand developments in the wine and spirits markets.
Current and historic duty rates for wine and spirits can be found in HM Revenue and Customs’ (HMRC’s) published Alcohol Bulletin. This is available to view at: https://www.uktradeinfo.com/Statistics/Pages/TaxAndDutybulletins.aspx.
The Government keeps all taxes, including wine and spirits duties, under review. Evidence from stakeholders on the impact of potential changes will be considered as part of the Budget process. An indication of the fiscal effect of a one per cent increase in duty in 2017-18 on all alcoholic drinks is set out in the HMRC publication, Direct effects of illustrative tax changes. This is available to view at: https://www.gov.uk/government/uploads/system/uploads/attachment_data/file/571367/Nov16_Direct_effects_illustrative_tax_changes_bulletin_final.pdf. For small changes in duty, the one per cent ‘ready reckoner’ can be scaled up or down to derive a rough estimate of larger changes.
The legal incidence of the duty is on producers, but increased duties are passed through as higher retail prices. Higher duties are thus estimated to reduce alcohol consumption.
Asked by: Tim Loughton (Conservative - East Worthing and Shoreham)
Question to the HM Treasury:
To ask Mr Chancellor of the Exchequer, what assessment the Government has made of the effect of the relative devaluation of the pound on the UK's wine industry.
Answered by Jane Ellison
HM Treasury has not made an assessment on the effect of a relative devaluation of the pound on the UK’s wine industry.
However, HM Treasury engages with a wide variety of organisations, including the Wine and Spirits Trade Association to understand developments in the wine market.
Asked by: Tim Loughton (Conservative - East Worthing and Shoreham)
Question to the HM Treasury:
To ask Mr Chancellor of the Exchequer, what assessment his Department has made of the effect of the forecast rise in inflation on the Government's projections for wine duty income over the next five years.
Answered by Jane Ellison
The Office for Budget Responsibility publishes the forecast for wine duty receipts and wine clearances. This is published in the Economic and Fiscal Outlook. The most recent Economic and Fiscal Outlook was published in March 2016, and is available at http://budgetresponsibility.org.uk/efo/economic-fiscal-outlook-march-2016/
Asked by: Tim Loughton (Conservative - East Worthing and Shoreham)
Question to the HM Treasury:
To ask Mr Chancellor of the Exchequer, for what reasons parents are unable to use childcare vouchers to pay for the cost of a school residential trip; and if he will amend the rules to permit parents to do so.
Answered by David Gauke
Childcare vouchers can only be used to pay for qualifying childcare which is registered or approved. Vouchers can be used to pay for approved childcare on school premises, provided it is outside of school hours for children who have reached compulsory school age. School residential trips do not qualify as registered or approved childcare because they occur outside of the school premises. The government does not have any plans to extend the use of childcare vouchers.
Parents in receipt of certain benefits are exempt from paying the cost of board and lodging for residential school visits.