§ Mr. AllenTo ask the Chancellor of the Exchequer if he will estimate by how much duty is underpaid each year by its being paid on potential brewery production rather than the amount of alcohol actually leaving the brewery; and if he will make a statement.
§ Mr. Ryder[holding answer 14 February 1990]: The beer duty is currently charged by reference to the original gravity of the beer prior to fermentation and not to the alcoholic content of the finished product. Underpayment of duty on the lines suggested in the hon. Gentleman's question does not therefore occur.
§ Mr. AllenTo ask the Chancellor of the Exchequer how much tax discount has been given to brewers to offset wastage incurred under traditional brewing methods for each year since 1979.
§ Mr. Ryder[holding answer 14 February 1990]: Since 1880 United Kingdom brewers have been legally entitled to deduct 6 per cent. from the quantity brewed when calculating the duty charge. This deduction is intended to cover normal spoilage and losses incurred in processing and packaging beer subsequent to the duty point; for the financial years since 1979 it reduced the duty liability by the following amounts:
£ million 1979–80 56.1 1980–81 64.2 1981–82 83.0 1982–83 93.5 1983–84 101.7 1984–85 110.3 1985–86 117.9 1986–87 118.2 1987–88 119.8 1988–89 125.2