§ Mr. Teddy TaylorTo ask the Chancellor of the Exchequer what assessment he has made of the likely increase or decrease in the consumption of alcohol and tobacco in consequence of the recommendation of the EEC Commission on tax harmonisation; and if he will make a statement.
§ Mr. Lilley[holding answer 11 May 1988]We estimate that consumption of alcoholic beverages would increase by between about 10 and 35 per cent., depending on the beverage; whilst consumption of tobacco products would increase by between about 5 and 20 per cent. depending on the product. The scale of the duty changes envisaged by the Commission is such that these estimates are subject to wide margins of error.