HL Deb 19 December 1995 vol 567 c135WA
Lord Stoddard of Swindon

asked Her Majesty's Government:

Whether they consider that the actual reduction in the price of a bottle of spirit of 27p and a real reduction, through non-indexation, in the price of all other alcoholic beverages except strong cider will lead to an increase in the consumption of alcoholic drinks.

Lord Mackay of Ardbrecknish

The responsiveness of demand to price changes is measured by price elasticities. Price elasticities supplied by the Institute for Fiscal Studies indicate that the real reductions in most alcohol duties are expected to increase consumption.