HC Deb 21 November 1967 vol 754 cc1111-2
8 and 9. Mr. William Price

asked the Chancellor of the Exchequer (1) if he will estimate the loss of revenue to the Exchequer due to the introduction of breathalyser tests;

(2) whether he will consider seeking tax adjustments to help publicans to overcome the financial losses attributed to breathalyser tests.

19. Sir G. Nabarro

asked the Chancellor of the Exchequer what diminution of revenue he now anticipates arising from a fall in the drink trade following the introduction of breathalysers; what was his 1967–68 anticipated revenue from alcoholic beverages; what is his revised estimate for 1967–68; and how he intends to stimulate the revenue to offset breathalyser depredations of revenue.

Mr. Diamond

My right hon. Friend's Budget estimate for the revenue from alcoholic drinks this year was £718 million. It is too soon yet to make any estimate of the effect on receipts of the road safety legislation, but I shall keep this under review.

Mr. Price

Is my right hon. Friend aware that we on this side of the House are delighted that the breathalyser tests are working, but is he aware that as a result many country pubs are facing grave financial difficulties? Will he consider what help he can give to the small men in the isolated communities who are helping to collect hundreds of millions of £s for the Exchequer and are at the same time providing a community service?

Mr. Diamond

I understand that what my hon. Friend has said is quite accurate, that there is a certain switch from country pub to the really local pub. We will keep this in mind.

Sir G. Nabarro

Does the right hon. Gentleman realise that in very rural areas, such as South Worcestershire, the drinking and catering trades on the fringe of dense industrial areas, such as Birmingham, the Black Country and Coventry are not just hard-hit by this measure, but many of the establishments are to be put out of business? As the loss of revenue will probably be of the order of £150 million in the full year out of £718 million, will he give an assurance that he does not propose to raise the standard rate of Income Tax to offset it?

Mr. Diamond

I would go this far. I would invite the hon. Gentleman to recognise that I am not worried about the consequential effects of this, and I hope he will not be worried either.

Sir G. Nabarro

I am very worried.