§ Mr. Jessel
asked the Chancellor of the Exchequer if he will estimate the effects of price increases of (a) 10 pence, (b) 20 pence, (c) 30 pence and (d) 50 pence per packet of 20 cigarettes on (i) Government revenue and (ii) the cost of living index.
§ Mr. Hayhoe
I assume that my hon. Friend is referring to price increases caused by duty changes. On this basis the estimates are:
Change in price of 20 cigarettes (pence) Full year revenue yield (£ million) RPI impact effect (per cent.) 10 320 0.4 20 620 0.7 30 900 1.1 50 1,400 1.8
For the larger price increases, the revenue estimates are subject to considerable margins of uncertainty.