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Written question asked by Jonathan Ashworth (Labour) on Wednesday, 17 April 2013, in the House of Commons. It was due for an answer on Monday, 22 April 2013. It was answered by Sajid Javid (Conservative) on Thursday, 25 April 2013 on behalf of the Treasury.

Excise Duties: Beer

Question

To ask the Chancellor of the Exchequer (1) what estimate he has made of the effect on (a) wine, (b) spirits and (c) beer consumption of the decision to freeze beer duty in Budget 2013;

[152445]

Answer

[holding answers 22 April 2013]: The estimated effect on wine, spirits and beer consumption of the beer duty cut at Budget 13, is presented in table 1 as follows.

Table 1�Effect of beer duty cut on consumption
Percentage
2013-14
 2014-15
 2015-16
Wine
 -0.03
 -0.04
 -0.04
Spirits
 -0.16
 -0.22
 -0.23
Beer
 2.15
 2.90
 3.06

The estimates made of consumption of beer, wine and spirits in the next three years used to calculate estimated income from alcohol duty receipts is presented in table 2 as follows.

Table 2�Consumption quantities product
Thousand hectolitre
2013-14
 2014-15
 2015-16
Wine
 12,903
 13,222
 13,789
Spirits
 2,646
 2,650
 2,687
Beer
 40,425
 39,208
 38,207

The average strength of wine is not used to administer the tax. To administer the tax on wine the Government sets duty rates for ranges of Alcohol by Volume (ABV). HM Revenue and Customs then monitor how much duty is paid in each of these categories and therefore the average strength of wine is not required.

The Government recognises availability of cheap alcohol is a serious issue and remains firmly committed in tackling this issue. The Government will shortly respond to its alcohol consultation, including with proposals to deal with deeply-discounted alcohol in supermarkets and other stores.

Secondary information

Type
Written question
Reference
152445; 561 cc1143-4W
Session
2012-13
Subjects
Beer Excise duties Wines Spirits
Contains statistics
Yes
Link
View this Written question on www.publications.parliament.uk