Clause 9 — Rates of alcoholic liquor duties

Part of Business of the House – in the House of Commons at 8:30 pm on 7 April 2010.

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Photo of Greg Hands Greg Hands Shadow Minister (Treasury) 8:30, 7 April 2010

I am not giving way, as I have only two minutes.

Those businesses will also be appalled that the Government, if they get the chance, are planning to undo the amendments before us today.

Finally, let me say something about the Liberal Democrats' position. It is a pity that Mr. Browne, their spokesman on Treasury matters, is not present to witness the Government's climbdown on cider duties. Dr. Cable is not here either, but it was the hon. Member for Taunton who mentioned, during the debate on last year's Finance Bill, that he had tabled an amendment that would have frozen duty on spirits but left duties on cider unchanged. Attempting to justify the move, he said:

"Cider is not as widely drunk in my constituency as it once was".-[ Hansard, 12 May 2009; Vol. 492, c. 778.]

That suggests to me that he is no great defender of the cider industry, although he is the Member of Parliament for Taunton. He subsequently tabled a further amendment to the Finance Bill which would have reduced taxes on beer but not, ultimately, those on cider. As we saw last year, the Liberal Democrats cannot claim to be friends of the cider industry.

The Opposition disagree with the whole basis of the Government's approach. Rather than imposing a blanket increase on all types and strengths of cider, we would direct tax increases at the problem, which is caused by high-strength, mass-produced cider. We believe in taxing those 3-litre supermarket bottles of problem cider rather than taxing ordinary, responsible drinkers.

Our approach is not specific to cider, however. We would apply the same approach to all alcohol duties. For example, we would also target super-strength beer. We believe in targeting problem drinks, not all drinkers. Meanwhile, the Government continue to make alcohol duties a blunter instrument than is necessary. Responsible drinkers are being punished, pubs continue to struggle, and the minority who cause trouble go unchecked.

Today we have won a significant victory for common sense on cider, but it is a forced victory. The Government's message to cider drinkers could not be clearer. They have given way temporarily, but are pledged to reverse this amendment if Labour is returned to power. Their message is simply this: if you want a 10 per cent. increase in cider tax, vote Labour. If you want your tax reduced-

Three hours having elapsed since the commencement of proceedings, the debate was interrupted (Programme Order, this day).

The Chair put forthwith the Question already proposed from the Chair (Standing Order No. 83D), That the amendment be made.

Amendment 1 agreed to.

The Chair then put forthwith the Questions necessary for the disposal of the business to be concluded at that time (Standing Order No. 83D).

Amendments made: 2, page 7, line 32, leave out "this section" and insert

"subsections (2) to (4) and (5)".

Amendment 3, page 7, line 33, at end insert-

'( ) The amendments made by subsection (4A) come into force on 30 June 2010.' .-(Mr. Timms.)

Clause 9, as amended, ordered to stand part of the Bill.

Clauses 10 to 22 ordered to stand part of the Bill.

Clause 23 disagreed to.

Clauses 24 to 57 ordered to stand part of the Bill.

Clause 58 disagreed to.

Clauses 59 to 64 ordered to stand part of the Bill.

Clause 65 disagreed to.

Clauses 66 to 71 ordered to stand part of the Bill.