HL Deb 27 February 1984 vol 448 c1039

2.55 p.m.

Lord Monson

My Lords, I beg leave to ask the Question standing in my name on the Order Paper.

The Question was as follows:

To ask Her Majesty's Government why the rate of excise duty on beer is on average almost 2½ times the rate of excise duty on cider, despite the generally greater alcoholic strength of the latter.

The Chancellor of the Duchy of Lancaster (Lord Cockfield)

My Lords, alcoholic strength has been only one of the factors determining the rates of duty on alcoholic drinks.

Lord Monson

My Lords, I am grateful to the noble Lord, Lord Cockfield, for his reply. Would he not agree that logically the taxes on both of these excellent beverages ought to be harmonised, ideally at the lower of the two levels, given that British beer taxes are already among the highest in Europe? Secondly, will he endeavour to persuade his right honourable friend the Chancellor of the Exchequer that, whatever the EEC may say, he should not increase taxes on beer to such an extent that the British working man can no longer afford his pint?

Lord Cockfield

My Lords, I would not agree that logic is necessarily the determining factor in these matters, but the needs of the Revenue and the circumstances of the trade also enter into decisions on issues of this kind. As the noble Lord will be well aware, my right honourable friend the Chancellor of the Exchequer is introducing his Budget on 13th March and he will pay regard to all representations that have been made.

Lord Winstanley

My Lords, may I ask the noble Lord whether his attention has been drawn to an article in the Financial Times of the 14th of this month, which stated that: The sharpest increase in the real level of excise duty since the Conservatives came to power has been for beer—up 19 per cent. over the period. In contrast, the real value of duty on a bottle of Scotch whisky dropped by 14.4 per cent."? Is it not rather odd that a Government dedicated to the eradication of alcoholism should provide incentives for people to drink whisky, or perhaps cider as the noble Lord suggested, rather than beer?

Lord Cockfield

My Lords, I would not agree that an increase in duty is an incentive to additional consumption.