Clause 2 - Rates of duty on cider
Finance Bill
12:00 pm
Mr Paul Boateng (Financial Secretary, HM Treasury; Brent South, Labour)
I hope that the Committee will unite in agreement on the clause, which reduces the excise duty rates on cider and perry by 2 per cent. with effect from 28 April 2002. The duty reduction represents a real-terms cut of 3.9 per cent., which, including VAT, is equivalent to a penny per pint of cider or perry. The reduction will boost the traditional cider industry, which is an important part of the rural economy that accounts for half of UK apple production and provides a steady source of income for many farmers. The reduction has already been warmly greeted by many outside the House, including John Thatcher—no relative—who is chairman of the National Association of Cider Makers. He says that
''given the fragile state of the industry this reduction is most welcome.''
I hope that that welcome will be shared and echoed by all Committee members.