§ Mr. Nicholas Wintertonasked the Chancellor of the Exchequer (1) if he will state for each of the last 10 years for which figures are available the percentage change on the previous year of the rate of tax levied on beer; and if he will also state the percentage change in revenue which was generated by this change in each of those years;
(2) if he will state for each of the last 10 years for which figures are available the percentage change on the previous year of the rate of tax levied on spirits; and if he will also state the percentage change in revenue which was generated by this change in each of those years;
(3) if he will state for each of the last 10 years for which figures are available the percentage change on the previous year of the rate of tax levied on fortified wines; and if he will also state the percentage change in revenue which was generated by this change in each of those years;
(4) if he will state for each of the last 10 years for which figures are available the percentage change on the previous year of the rate of tax levied on table wines; and if he will also state the percentage change in revenue which was generated by this change in each of those years.
§ Mr. BrookeThe percentage increases in the rates of duty are shown below. Also shown are the percentage increases in total revenue in each of the last 10 years. However, the increases in revenue reflect factors other 675W than the changes in duty, such as changes in producers' prices and in consumers' preferences. Year on year comparisons are also sensitive to fluctuations in the pattern of pre-Budget stockbuilding and to distortions caused by the introduction of duty deferment for wines and spirits in 1982–83. I regret, therefore, that it is not possible to estimate the revenue effects of the duty change in isolation.
Receipts for table wines and fortified wines are not separately identifiable, so figures are given for receipts for lower strength wine of fresh grape, which is mostly table wine, and for middle and higher strength wines of fresh grape, which include most of the fortified wines.
(i) Percentage change in Spirits Duty Revenue 1976–77 11.5 24.3 1977–781 10.0 0.7 1978–79 nil 26.3 1979–80 nil 4.3 1980–81 13 .7 nil 1981–82 14.6 6.0 1982–83 6.4 -21.0 1983–84 5.0 76.3 1984–85 1.9 -27.0 1985–86 1.9 21.0
(ii) Percentage change in lower strength wines of fresh grape Duty Revenue 1976–77 12.6 2n/a 1977–78 1 10.0 13.3 1978–79 nil 16.3 1979–80 nil 20.5 1980–81 13 .9 13.9 1981–82 16.9 35.2 1982–83 12.2 319.9 1983–84 5.8 311.6 1984–85 -19.9 37.0 1985–86 8.3 37.8
(Hi) Percentage change in middle and higher strength wines of fresh grapes4 Duty Revenue middle strength wines higher strength wines 1976–77 16.2 19.9 2n/a 1977–781 10.0 10.0 nil 1978–79 nil nil 19.2 1979–80 nil nil nil 1980–81 13.9 13.9 -2.5 1981–82 30.8 30.8 27.9 1982–83 12.2 12.2 3nil 1983–84 5.8 5.8 39.3 1984–85 8.0 6.8 30.6 1985–86 7.3 6.3 3 -14.0
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(iv) Percentage change in Beer Duty Revenue 1976–77 15 .8 23.9 1977–781 10.0 10.4 1978–79 nil nil 1979–80 nil 2.6 1980–81 22.5 14.4 1981–82 37.9 29.4 1982–83 13.3 12.5 1983–84 5.9 10.0 1984–85 11.1 8.7 1985–86 7.5 7.3 1 This duty rate became effective from I January 1977 as a result of a 10 per cent. regulator surcharge on the 1976 Budget duty rate.
2 Not available due to restructuring of wine duties.
3 Based on estimated duty charged.
4 Revenue changes are for middle and higher strength wines together; duty changes are shown separately.
§ Mr. Nicholas Wintertonasked the Chancellor of the Exchequer (1) if he will estimate the total annual revenue which would be generated by an increase in duty of 5p on a bottle of table wine;
(2) if he will estimate the total annual revenue which would be generated by an increase in duty of 10p on a bottle of spirits.
§ Mr. BrookeThe estimated full year net revenue yield (including consequential value-added tax) of raising duty by 10p on a 75c1 bottle of spirits is about £15 million in 1987–88 prices. On the same basis, a duty increase of 5p on a 70c1 bottle of table wine would yield about £25 million.