HC Deb 24 February 2004 vol 418 c387W
Mr. Peter Duncan

To ask the Secretary of State for Work and Pensions what plans the Government has to promote the use of Post Office card accounts in Scotland. [155473]

Mr. Pond

Our nationwide direct payment information campaign has an important role to play in the way we take customers through the associated changes.

When it is their turn to change customers are being provided with all the information they need on all of their "account options". This information lists all the accounts, which can be accessed at post office branches and sets out how to apply for a Post Office card account. It will be for customers themselves to decide which

Wine
Excise

duty rate

Spirits

£/Litre of

alcohol

Beer

£/h/1 per cent.

alcohol.

Still Sparkling
ABV £/hl ABV £/hl
UK 19.60 12.22 > 2 per cent. < 4 per cent. 48.91 > 5.5 per cent. < 8.5 per cent. 166.70
>4 per cent. > 5.5 per cent. 67.25
> 5.5 per cent. < 15 per cent. 158.69 > 8.5 per cent. < 15 per cent. 220.54
15 per cent. to 22 per cent. 211.58
Spain 5.20 1.43 0.00 0.00
France 10.20 1.83 2.39 5.90

The second table shows the cost in excise duty and VAT revenue forgone if the UK were to apply the excise duty rates applicable in France in December 2003. These figures are derived from the HM Treasury alcohol demand model published in May 20031, which is used to estimate associated effects on demand. This shows that the total cost of equalising excise duty rates for beer, wine and spirits with those in France would be more than £6 billion, equivalent to a 1.5 per cent. increase in the standard rate of VAT or around 2p extra on the basic rate of income tax.

Revenue Forgone
£ billion
Spirits 0.80
Beer 3.44
Wine 1.88
Total 6.12
1Further technical details relating to this econometric model can be found in Government Economic Service Working Paper No. 140.