§ Mr. Gardinerasked the Chancellor of the Exchequer if he will estimate the revenue effect per penny of reducing total tax charges, excise duty plus value added tax on beer, spirits and low, medium and high strength wines, respectively, expressed in £ million at 1985–86 prices.
§ Mr. Hayhoe[pursuant to his reply, 17 December 1984, c. 66]: The estimated revenue losses are:
Price reduction (duty plus consequential VAT) Full year net revenue cost at 1985–86 prices (£ million) Beer lp per pint 90 Spirits lp per bottle 1 Wine and Made-Wine low strength* lp per bottle 5 medium and high strength† lp per bottle 1.5 Notes:
* Less than 15 per cent. alcohol by volume.
†15 per cent. to 18 per cent. and over 18 per cent. alcohol by volume.
Within limits the revenue estimates shown here can be scaled up to give a reasonable guide to the effects of larger duty reductions, although the margins of uncertainty become progressively larger as the size of reduction increases.