(Except clauses 4, 19, 23, 26 to 29, 87 to 92, 131 and 134 and schedules 1, 5 and 38) - Clause 3 - Duty on beverages made with spirits to be at spirits rate
Finance Bill
4:30 pm
Mr Mark Hoban (Fareham, Conservative)
I also welcome you to the Chair for this afternoon's proceedings, Mr. Benton.
In his amendment, my hon. Friend the Member for Christchurch has addressed the problem with clause 3. When we discussed clause 2 this morning, there was an issue about whether cider should be subject to a higher tax because it has a greater alcohol content. When one compares the contents of that debate with clause 3, there appears to be a discrepancy in the Government's case. It is not clear whether the measure is being brought forward for health reasons to reduce binge drinking, in which case the argument for reducing the duty on cider is not appropriate, or simply to raise revenue.
The explanatory notes state that there has been an increase in demand for alcopops in recent years. If that price increase is to be believed, demand has increased off the back of steep price increases, although I note that my right hon. Friend the Member for Fylde (Mr. Jack) referred to the ACNielsen report, which indicates that the price increase during the past couple of years has been only 20p. I wonder whether the Government are targeting those drinks simply as an easy revenue raiser, knowing that they are popular and in demand and that, even with an increased price, the yield on the tax will continue to be very sound and will benefit the Exchequer. Consequently, it may be misleading to try to dress up the tax increase as though it were on health grounds, given the earlier comments on cider.
We must also consider what will happen if the amendment is rejected and the tax increase goes through. I fear that more young people, rather than using the relatively low alcohol alcopop drinks, will switch straight to drinking shots—neat spirits. Certainly, what I believe are called sidekicks are available in off-licences. They are shot measures of
spirits, which will get people more drunk more quickly, and possibly more cheaply, than alcopops. We must look at the health debate in the wider context of what else is available to young people to get them drunk quickly, cheaply and, from their perspective, efficiently.
The amendment gives the Committee and the House time to pause and think about why the measure has been introduced and about how we can address antisocial behaviour and binge drinking in a more considered and mature fashion, looking at all rates of duty on alcohol, not simply those on cider or, as in this case, alcopops in isolation.