Clause 5

Part of Finance Bill – in a Public Bill Committee am 6:30 pm ar 8 Mai 2007.

Danfonwch hysbysiad imi am ddadleuon fel hyn

Photo of John Healey John Healey The Financial Secretary to the Treasury 6:30, 8 Mai 2007

It is a revenue measure, and one that is entirely consistent with the convention and the usual approach to excise duties, which is that, generally, this Government and previous Governments would, at first blush, look to increase duties in line with inflation, at least to maintain their real value.

This is a modest increase—a freeze in real terms—which comes after actual freezes in beer and still-wine duty in three of the previous 10 Budgets. In addition, cider duty was frozen in the previous four Budgets and sparkling wine duty was frozen in each of the previous six Budgets.

There have been concerns about alcohol-related harm, its social impact and the quite serious problems that it causes in some areas; that may have been what the hon. Member for Windsor was driving at, and I look forward to hearing any contribution that he would like to make to the discussion. As a result of those concerns, and as a proposed response to those problems, there have been calls for significant increases  in duty. However, the view that the Government take—it is the view that we have consistently taken in the Treasury—is that that sort of social harm and social concern is best tackled by social legislation and by working with the trade in self-regulation, rather than by taxation, which, in this circumstance, is an instrument that is not best suited to deal with the social problems that we are discussing. In fact, it wouldbe likely to penalise the vast majority of responsible drinkers rather than affecting the minority who cause us concern.