HC Deb 28 November 1985 vol 87 cc1000-1
2. Mr. Nicholas Brown

asked the Chancellor of the Exchequer which factors he takes into account in calculating the extent to which public expenditure is to be funded by taxation on tobacco products.

The Chief Secretary to the Treasury (Mr. John MacGregor)

Many factors contribute to the Chancellor's judgment at Budget time in relation both to the overall amount to be raised in taxation and to the contribution to that of individual taxes, such as those on tobacco.

Mr. Brown

Is the Minister aware that the dumping of German cigarettes on the British market reduces the amount of revenue that is available to the Exchequer and also brings cigarettes within the price range of young people, to which both the Government and the British industry say they are opposed? Will the Minister say what steps the Government intend to take to prevent this abuse, or tell the House what alternative proposals he has in mind for raising revenue other than by the tax on tobacco?

Mr. MacGregor

The hon. Gentleman's latter point must be a matter for the Chancellor of the Exchequer at each Budget time. As for the hon. Gentleman's first point, whether or not there is evidence of dumping is a matter for my right hon. Friend the Secretary of State for Trade and Industry. I am informed that there is no such evidence and that imported products are subject to the same excise duties.

Mr. Sims

Has my right hon. Friend had the opportunity to examine the statistics in the document entitled "The Big Kill", which was issued a couple of days ago by the British Medical Association? Does he agree that an increase in the duty on tobacco products, even if it produced a lower revenue for the Exchequer, would be money well spent on reducing disease and death and that it would reduce the £111 million spent each year by the National Health Service on dealing with smoking-related diseases?

Mr. MacGregor

The health factor is one among several that my right hon. Friend the Chancellor of the Exchequer takes into account at each Budget time. However, I think my hon. Friend knows that the consumption of cigarettes has declined during the last five years by about 20 per cent. I guess that it is the perception of consumers about the health risk that has caused a decline in consumption.