§ Dr. CableTo ask the Chancellor of the Exchequer what(a) short run and (b) long run price elasticity of demand is assumed by the Treasury in its analysis of the impact of tax changes in respect of (i) cigarettes, (ii) beer, (iii) wine, (iv) spirits, (v) petrol, (vi) domestic gas, (vii) domestic electricity and (viii) domestic energy as a whole. [27476]
§ Dawn PrimaroloThe costings for tax changes for the current year and the following two years are published in the Financial Statement and Budget Report. In preparing these costings, Customs and Excise use the following elasticities: cigarettes -0.201, beer -0.963, wine -1.048, spirits -1.070 and petrol -0.272. Domestic gas, domestic electricity and domestic energy as a whole are grouped under domestic fuel and power. All use an elasticity of -0.187.