Clause 1 - Rates of tobacco products duty
Finance Bill
11:45 am
Mr Paul Boateng (Financial Secretary, HM Treasury; Brent South, Labour)
As usual, as my hon. Friend, who sadly must be silent through these Committees normally, says from a sedentary position. The Government of whom the right hon. Member for Fylde was a member introduced the tobacco duty escalator, which ensured above-average inflation price increases. It was 3 per cent. in 1993 and it was increased to 5 per cent. in 1997, when the right hon. Gentleman was Financial Secretary to the Treasury. We abandoned that in November 1990, although there was, as has been said, the 5 per cent. increase in Budget 2000. That has historically been the pattern of taxation in this country, as the right hon. Member for Rushcliffe—