HC Deb 06 July 1998 vol 315 cc340-1W
Mrs. Lait

To ask the Chancellor of the Exchequer if he will estimate the reduction in excise revenue caused by the decline in popularity of alcopops in the period to March 1998. [43402]

Dawn Primarolo

Clearances of coolers (the duty category in which alcopops fall) fell by 29 per cent. between 1996–97 and 1997–98. If one assumes duty rates as of 1 January 1997 (for both years), then this fall is equivalent to some £27m in excise revenues.

The revenue loss to the Exchequer is less than this because it is likely that some consumption of alcopops has switched to other alcoholic drinks.