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  • HISTORIC PRESS RELEASE : Local Authorities have key role to play in preparing for the Euro [July 1998]

    HISTORIC PRESS RELEASE : Local Authorities have key role to play in preparing for the Euro [July 1998]

    The press release issued by HM Treasury on 9 July 1998.

    Helen Liddell speaks to Local Government Association Conference.

    Local authorities have a key role to play in preparing their local business communities and must also prepare themselves for the introduction of the euro on 1 January 1999, Economic Secretary Helen Liddell said today.

    Speaking at the Local Government Association Conference in Bournemouth the Minister said that as part of the public sector, local authorities were vital in ensuring the UK is ready for the introduction of the euro. She said:

    “It is vital for local authorities to encourage local business communities to think strategically about theeuro, to prepare for its launch, and fit that into the changing economic environment.”

    But she also emphasised that they themselves must be ready, particularly in the area of procurement policy. The Minister said:

    “Public procurement policy will be a key area for consideration. Suppliers may expect to invoice in the euro. If you insist on paying in sterling there may be a premium to pay.

    “Many of you will also be involved in public private partnerships, and other consortia. There may be pressure to deal in euros in some of these. It is vital to assess the implications.”

    Mrs Liddell called on local authorities to pay their full part in the twelve regional forums that have been set up to identify key regional issues arising from the introduction of the euro. She said:

    “We are setting up regional groups across the country to bring together key strategic partners with an interest in gearing UK business up to the challenge of the euro. I urge you to play a full and active part in ensuring they are a success.”

    The Minister also pointed to the creation of a working group which brings together key local government representatives, chaired by the Department of Environment, Transport and the Regions. The aim of the group is to ensure that ongoing preparations and information about the euro is effectively communicated to local government.

    On a national level, the Government was playing its part in preparations, including:

    the creation of a Business Advisory Group to look at private sector preparations and a Euro-Coordinators Group to examine preparations in the public sector;

    the Treasury Euro Preparations Unit which has already produced publications, set up a telephone help-line and a website; and

    preparations for an advertisement campaign on television and in newspapers and journals to raise awareness and help make sure the UK is ready for the euro.

  • HISTORIC PRESS RELEASE : Helen Liddell has IFAs in her Sights [July 1998]

    HISTORIC PRESS RELEASE : Helen Liddell has IFAs in her Sights [July 1998]

    The press release issued by HM Treasury on 7 July 1998.

    Independent Financial Advisers (IFAs) were today blasted by the Economic Secretary Helen Liddell for their lack of progress in sorting out personal pensions misselling.

    The Minister called in 30 senior representatives of IFAs and IFA networks and told them she was very concerned about the slow progress in the sector. IFAs were seriously lagging behind the major pension firms who had made big strides in sorting out their pensions cases.

    Mrs Liddell said:

    “Enough is enough. My patience is exhausted by the lack of progress of IFAs. I am amazed at the attitude of firms who seem to think their inaction is defensible, and when faced with phase 2 of the review choose to blame everyone except themselves.

    “People have lost out as a result of having been sold products, which were wrong for them. IFAs have a clear responsibility to sort out whether any of their customers deserve compensation and provide it where it is warranted Where there was misselling, those who took the profit should now face the pain.”

    The meeting followed on from an announcement yesterday by the Personal Investment Authority (PIA) that 41 IFAs were being disciplined for failings connected with the pensions review. The Minister said:

    “I hope this action by the PIA makes it absolutely clear to all IFAs that discipline is a real prospect if they fail to deal with their cases. The review must be tackled with professional diligence and businesslike rigour. Nothing less will do. We are talking about people’s life savings and their future welfare.”

    The Minister called into question the future of the IFA sector and said she would be keeping a careful eye on IFAs’ progress over the next few months and said if actions was warranted it would be taken. She said:

    “In the long term, if the IFA sector fails to put its house in order, and genuinely command the trust of customers, it will not only call into question the viability, but possibly the desirability, of the current industry structure.”

    Mrs Liddell advised the public to be very careful when using an IFA. She said:

    “In my opinion anyone thinking of taking advice should check out the IFA thoroughly. Check their attitude to the consumer protection that regulation provides, and to putting right past problems – including their progress with the pensions review. Ask if they have ever been fined or disciplined by the regulators.”

  • PRESS RELEASE : Up to £600 winter help paid to over 11.5 million pensioners [December 2022]

    PRESS RELEASE : Up to £600 winter help paid to over 11.5 million pensioners [December 2022]

    The press release issued by the Department for Work and Pensions on 20 December 2022.

    11.6 million Winter Fuel Payments and Pensioner Cost of Living Payments have been made to pensioners across the UK so far this winter.

    This means over 99 percent of eligible pensioners have already received up to £600 to help with their energy bills since the rollout began in November.

    Some payments are continuing into next month – and should arrive by 13 January.

    11.6 million Winter Fuel Payments and Pensioner Cost of Living Payments – support worth a total of £4.6 billion – have already been made to pensioners across the UK this winter, the Department for Work and Pensions confirmed today.

    The vast majority of these payments – worth up to £600 per household – have landed in pensioners’ bank accounts automatically, directly helping people manage their energy bills and household budgets.

    Work and Pensions Secretary Mel Stride said:

    As the cold weather bites, it is good to be able to confirm that over 99 percent of eligible pensioners have already received as much as £600 to help with their energy bills this winter.

    These payments are just one part of the wider support package we are delivering to help with rising bills, with additional help to follow next year – including the biggest State Pension increase in history.

    Pensioners who have not yet received their payment should not be concerned, as payments are continuing into January. However, pensioners who have not received their payments by 13 January 2023 should contact the Winter Fuel Payment Centre online or by telephone.

    The payments appear in bank statements with the payment reference beginning with the customer’s National Insurance number followed by ‘DWP WFP’ for people in Great Britain, or ‘DFC WFP’ for people in Northern Ireland. Pensioners are being asked to double check their bank statements for this reference number before contacting DWP.

    The overwhelming majority of Winter Fuel Payments are paid automatically but some people need to make a claim, such as those who qualify but do not receive benefits or the State Pension and have never previously received a Winter Fuel Payment.

    Those who need to make a claim have until 31 March 2023 to do so, with further information on who needs to make a claim available on the GOV.UK Winter Fuel Payment page.

    Winter Fuel Payments – boosted this year by an additional £300 per household Pensioner Cost of Living payment – are part of an extensive package helping people of all ages with the cost of heating their homes this winter.

    This includes providing households with £400 towards their energy bills, with the Government’s Energy Price Guarantee saving the typical household another £900 on top of this.

    In addition, millions of payments of up to £650 have already been made this year to low-income households on eligible means-tested benefits as part of the government’s cost of living support. This includes pensioners receiving Pension Credit.

    The average Pension Credit award is worth over £3,500 a year and the online Pension Credit calculator is on hand to help pensioners check if they’re likely to be eligible and get an estimate of what they may receive.

    Alongside this, households receiving certain benefits – including Pension Credit – could be eligible for extra money between now and the end of March 2023 thanks to DWP’s Cold Weather Payments.

    These are an automatic bank top-up of £25, paid to eligible households when the average temperature has been recorded as, or is forecast to be, zero degrees C or below over seven consecutive days at the weather station linked to an eligible person’s postcode. Postcodes already triggered this Winter can be found on the GOV.UK Cold Weather Payments Checker.

    Further cost of living support to be paid next year was recently announced by the Chancellor. Payments will include a further £300 for pensioner households, up to £900 for households on means-tested benefits and £150 for those on eligible disability benefits.

  • HISTORIC PRESS RELEASE : Chancellor Gordon Brown Welcomes Japanese Bridge Bank Plan [July 1998]

    HISTORIC PRESS RELEASE : Chancellor Gordon Brown Welcomes Japanese Bridge Bank Plan [July 1998]

    The press release issued by HM Treasury on 3 July 1998.

    Chancellor Gordon Brown today welcomed the accelerated announcement yesterday of the Japanese authorities ”Comprehensive Plan for Financial Restructuring’, as evidence of Japan’s commitment to tackle its economic problems.

    The Chancellor said:

    “This policy action marks an important step forward for Japan. The ‘bridge bank’, and other proposals to improve the disposal of bad loans, provide a firm signal of Japan’s commitment to tackling its financial and structural problems. This will be crucial to restoring confidence and strengthening the Japanese economy.”

    Stressing the need for credible and rapid action, Mr Brown said:

    “We look forward to the speedy implementation of these measures, and the steps necessary to restore the health of the financial sector and stimulate demand. This will be vital for sustained economic recovery in Japan and Asia as a whole.”

    There have been extensive G7 discussions on the Japanese economy this year, most recently at a meeting in Tokyo on June 20 between G7 and Asian Finance Deputies, which concluded that restructuring and revitalisation of the Japanese economy and financial system was urgently needed.

  • Neil O’Brien – 2022 Speech on NHS Dentistry in Salford and Eccles

    Neil O’Brien – 2022 Speech on NHS Dentistry in Salford and Eccles

    The speech made by Neil O’Brien, the Parliamentary Under-Secretary of State at the Department for Health and Social Care, in the House of Commons on 19 December 2022.

    Let me start by congratulating the hon. Member for Salford and Eccles (Rebecca Long Bailey) on securing this important debate. I share her frustration and am aware that some areas in the country face serious difficulties with access to NHS dental care. She used some powerful examples, which are exactly the kinds of things that we are trying to fix.

    As we recover from the pandemic, activity is going back up again and we want it to go up faster. Dentistry is an important part of the NHS. We are committed to addressing the challenges that NHS dentistry faces in some parts of the country. We are continuing to take important steps to improve access for patients. There are variations around the country, which was already an issue before the pandemic.

    The specific risks from covid in dentistry, for obvious reasons given the nature of the treatment—looking down people’s throats and breathing in the same air—resulted in the need to reduce the amount of care that could be delivered, in line with infection prevention and control measures to keep patients and the workforce safe. The pandemic placed further pressure on the system. However, NHS dentistry provision has been increasing gradually and safely. I am pleased to say that NHS England asked all dental practices to return to 100% of their contracted activity in July this year. Many practices are already delivering at that level and, in some cases, beyond. I will go on to talk about delivering beyond.

    To support the industry during this testing time, we took unprecedented action and provided over £1.7 billion in income protection, to ensure that NHS dentist capacity was retained and services were provided and available after the pandemic. We made an additional £50 million available for NHS dental services at the end of last year, to increase capacity in NHS dental teams. Appointments were given to those in most urgent need of dental treatment, including vulnerable groups and children. As a result of that funding, I am pleased that say that an additional 1,110 patients were seen in Salford. To support the provision of urgent care, more than 170 urgent dental care centres remain open across the country. One of those centres is in the Salford locality, as the hon. Lady knows.

    Across the nation, the system is recovering and delivery of dental care is increasing. In 2021-22, 24,272 dentists performed NHS activity—an increase of 539 on the previous year. In the 12 months to 30 June this year, 5.6 million children were seen by an NHS dentist, compared with 3.9 million children in the same period the previous year. That represents a 43% increase.

    John McDonnell (Hayes and Harlington) (Lab)

    There have been reports in a number of our constituencies of almost a dental health epidemic. Can the Minister explain whether there will be targeted resources for a number of our constituencies where there is such a high level of child dental ill health?

    Neil O’Brien

    I am exploring how we can best target the places with the most acute problems. There are problems in a lot of different places, and we are thinking about that actively at the moment. I will come back to that as I make progress.

    Jamie Stone (Caithness, Sutherland and Easter Ross) (LD) rose—

    Madam Deputy Speaker (Dame Rosie Winterton)

    Order. I gently say to the hon. Gentleman that if he wanted to intervene, he ought to have been here right at the beginning, because it is the hon. Lady’s Adjournment debate, and it is about Salford and Eccles? I leave it to him to decide whether he wishes to intervene.

    Neil O’Brien

    I am happy to take whatever interventions are appropriate.

    We know that there are still further improvements to be made. Although I am pleased that over 75% of the patients who tried to get a dental appointment over the last two years were successful, this is not back to the level that we were seeing pre-pandemic, which was 92%. That is why in July and in our plan for patients, which the hon. Lady mentioned, we announced some improvements to the 2006 contract to ensure that patient access was improved, although I want to reassure her that we do not regard those as the end of the story; they were a stepping stone.

    Those changes included: making sure that dentists were remunerated more fairly for complex work, which will improve access for patients; implementing a minimum value of £23 for each unit of dental activity, boosting incomes in the places where the UDA value is lowest; and enabling dental practices to deliver up to 110% of their contract levels, to increase activity and allow those practices that are delivering NHS care most effectively to deliver more. This effectively takes away the cap that has been in place since the 2006 contract, which the hon. Lady mentioned.

    This package will increase and improve access to dental care for patients across the country. We have already taken action to implement these changes, including through regulations that came into effect on 25 November. The changes have all been decided with careful consideration, working collaboratively with the dental sector. The Department has worked with the General Dental Council on legislative proposals that will make registration processes for dental professionals qualified outside the UK more proportionate and streamlined, making the process to join the UK workforce more efficient for dentists from overseas. These changes are another way in which we are seeking to improve access for patients.

    Finally, to make it easier for patients to find dentists taking on new patients, we have made it a requirement for NHS dentists to update their information on the NHS website, which has historically been out of date, but of course we are looking to go further to ensure that those appointments are there. These changes are just the beginning. They are the necessary first steps of our work to improve NHS dentistry. These are the measures that we can take immediately, and they will have a noticeable impact, but we will go further.

    Looking forward into the new year, we have been working with NHS England and the sector on further changes to improve access. Our priorities for this next phase of reform include: improved access to urgent care for patients who need to see someone immediately; better access to care for new patients; and further workforce and payment reform. We aim to take the necessary steps to implement these changes next year, but I am keen to seek every opportunity to take action wherever I can, and ahead of those reforms we are also actively considering what support we can offer to help patients who do not currently have access to the dental system and those who are not attached to a practice, who have the worst access. We are also considering how the recruitment and retention of dentists can be improved, particularly in the parts of the country where the need is greater. We are also thinking further about how overseas qualified dentists can be supported to start working in the NHS more quickly.

    I am strongly committed to improving our NHS dental system wherever I can for all those who need it. The hon. Lady has set out a powerful case today on why we need to go further, and we will go further. I thank her for raising this important debate, and I hope that she will be reassured that although the reforms we have made so far will make a difference, they are far from being the end of the story, and that we will continue to take action to improve access to NHS dentistry across the nation.

  • Rebecca Long-Bailey – 2022 Speech on NHS Dentistry in Salford and Eccles

    Rebecca Long-Bailey – 2022 Speech on NHS Dentistry in Salford and Eccles

    The speech made by Rebecca Long-Bailey, the Labour MP for Salford and Eccles, in the House of Commons on 19 December 2022.

    The British Dental Association states that NHS dentistry is facing an existential threat. It says that the threat predates the pandemic, when only enough dentistry for about half the population of England was commissioned. Access to NHS dental services was already very poor in many parts of the country, but access problems have now reached an unprecedented scale, with existing deep inequalities in access and outcomes set to widen. Sadly, nowhere are those access problems more acutely felt than in my constituency of Salford and Eccles. I have been receiving unprecedented levels of casework from people who simply cannot access an NHS dentist.

    One constituent works night shifts on minimum wage. She had required urgent root canal treatment for some time but could not find an NHS dentist and could not even contemplate the cost of a private dentist, so, like millions across the country, she struggled on. The problem is now so severe that her tooth is beyond saving with root canal treatment. She is having to consider having it removed, which she is told will cost her several hundred pounds. She has not got several hundred pounds. She does not know where to turn.

    Another constituent, who is also on a low income, had been trying to find an NHS dentist for over two years. They had two broken teeth and other dental issues that they could not afford to have treated privately, so they called the emergency dentist helpline. The helpline advised them to go for private treatment. Now, at only 21 years of age, my constituent cannot afford any dental treatment at all, and they fear that they will end up losing their teeth.

    Another constituent, who is registered with a disability and who works full-time for the NHS on low pay, tried as far as Rochdale and Oldham but eventually had to pay £250 for a private tooth removal that left her with little money to live on until her next pay cheque.

    To assess the severity of the situation, my office rang every single dental practice listed on the NHS website as falling within my constituency, to inquire if they were accepting new adult NHS patients. Every single one said no, and only two said that they were taking on new NHS child patients. What is worse, when I raised that very issue with the Government back in October 2021, I was informed that they had not made an assessment of the numbers of people refused NHS dental treatment, nor did they hold any waiting list data at all on access to NHS dental services in Salford or Greater Manchester. Not even to be aware of the scale of the problem is, in itself, somewhat staggering.

    As I am sure the Minister is aware, this is not just a Salford problem, but a national one. Researchers for the BBC documentary “Disappearing Dentists”, which aired in August, attempted to call every one of the dental practices in the UK that holds an NHS contract. Of the 26 dental practices with NHS contracts across Salford, 96% were not taking new adult NHS patients, and UK-wide, 90% of practices were not taking new adult NHS patients.

    I must pay full credit to the local staff and teams across Salford: all the dentists, hygienists, therapists, nurses and administrators, and the Greater Manchester integrated care partnership’s dental commissioning team. They are giving their absolute best in incredibly difficult circumstances. However, our dental services are under unprecedented strain.

    I would be grateful if the Minister addressed the following issues in his response. First, there has been chronic underfunding of NHS dental services. In real terms, net Government spend on general dental practice in England was cut by over a quarter between 2010 and 2020. It is also important to note that England invests significantly less in dental services per head of population than other parts of the UK. For example, before the pandemic Government spend on NHS dentistry per capita was £37 in England, compared with £49 in Wales, £56 in Northern Ireland and £59 in Scotland. The Minister might respond by saying that in January the Government pledged £50 million for a “dentistry treatment blitz”. However, that was a time-limited, one-off injection of funding which had very modest take-up, as practices were so overstretched in trying to hit unrealistic activity targets that they struggled to find any additional capacity. The British Dental Association estimates that it would take £1.5 billion a year just to restore dental budgets to their 2010 levels. I hope that the Minister will agree to take back a proposal to his Department for the ringfencing of long-term funding on that scale.

    Secondly, the current target-based NHS dental contract is causing serious problems in the recruitment and retention of staff. The British Dental Association says that we are facing an “exodus” of dentists from the service: 75% of dentists surveyed are thinking of reducing their NHS commitments next year alone. Central to this is not only the issue of chronic underfunding that I have already mentioned, but the current discredited target-based dental contract that was imposed on the profession in 2006 and was widely considered unsustainable and unfit for purpose even before the pandemic. Indeed, in 2010 both Labour and the Conservatives committed to amending the contract. It sets restrictions on the number of NHS patients that a dentist can see, and it punishes dentists for taking on new patients with high needs.

    The Minister may, of course, refer to a package of marginal changes that the Government introduced in November, including dentists’ updating a “find a dentist” website regularly with details of the availability of appointments, a higher reward for treating three or more teeth, and a new payment rate for complex treatment. While those are of course welcome changes, sadly there is little point in setting up a “find a dentist” website for appointments when the Government know that no appointments are actually available.

    Furthermore, the British Dental Association states that the changes will do little to arrest the exodus of dentists from the service or to address the crisis in patient access, given that they have been introduced with no additional funding. With that in mind, I would be grateful if the Minister told me when formal negotiations on fundamental long-term reform of the dental contract are due to begin.

    A constituent contacted me to express concern about the Government’s plan to go ahead with proposed changes pursuant to the recent consultation on changes to the General Dental Council’s international registration legislation despite the large number of respondents who have raised issues relating to the proposal. I hope that the Minister will take those concerns on board, and will agree to review it.

    Thirdly, let me stress to the Minister that NHS dentistry must cease to be treated as an afterthought in healthcare policymaking. Changes in primary care commissioning in the Health and Care Act 2022 must not lead to further cuts, and dental services must be represented adequately in the governance structures of the new integrated care systems.

    Let me finally point out that prevention is key, but has lost its way somewhat in recent years. The Government must undertake to build on historical commitments to prevention, in parallel with support for dental services. That must include supervised brushing in early years settings, dedicated funding for new water fluoridation schemes, and measures to reduce sugar consumption.

    I hope that the Minister has listened to the concerns I have raised and will address each point in turn, rather than reiterating previous Government responses on what they have done so far. What the Government have done so far clearly is not working. If my constituents cannot get access to an NHS dentist across Salford and Eccles, something needs to change urgently. Access to dental treatment should be a right, not a luxury.

    As I set out at the start, NHS dentistry faces an existential threat. My constituents are not receiving the access to care that they deserve. It is clear that urgent action is required. Finally, let me take this opportunity to wish you, Madam Deputy Speaker, a fantastic Christmas and a happy New Year, and the same to the Minister and all staff in the House.

  • PRESS RELEASE : Increased fishing opportunities worth £750 million agreed for 2023 [December 2022]

    PRESS RELEASE : Increased fishing opportunities worth £750 million agreed for 2023 [December 2022]

    The press release issued by the Department for Environment, Food and Rural Affairs on 20 December 2022.

    The UK fishing industry will benefit from 140,000 tonnes of fishing opportunities worth over £280 million in 2023 after the UK today (20 December 2022) reached an agreement with the EU.

    This brings the total value of fishing opportunities secured for the UK fleet in 2023 in the three main negotiation forums to £750 million, a £34 million increase from last year.

    In the third year of annual fisheries negotiations with the UK operating as an independent coastal state, the UK and EU today agreed catch levels for 69 important fish stocks. This included some of the most commercially valuable stocks to the UK fishing industry such as North Sea Nephrops (£54m), Anglerfish (£31m) and Western hake (£25m).

    Throughout the negotiations, the UK Government has worked closely with the devolved administrations to ensure fishing communities across the UK will benefit from the agreement. The Scottish industry, for example, will benefit from improved catch levels for North Sea stocks including cod, hake, whiting and nephrops.

    The agreement also commits the UK and EU to work together to provide more sustainable fisheries management.

    Fisheries Minister Mark Spencer said:

    Our agreement with the EU secures valuable fishing opportunities for the UK fishing industry while cementing our joint commitment to manage fisheries sustainably.

    These decisions are based on the latest scientific advice to help protect key fish stocks with the long-term health of the marine environment at the forefront of our minds.

    We are backing the fishing industry across the country to succeed, with a landmark £100m investment in infrastructure, skills and better scientific data so that our fishing industry thrives for generations to come.

    This latest deal follows an agreement with the UK, EU and Norway on six North Sea fish stocks including cod, haddock and herring worth £202m to the UK fishing industry, and a further £11 million in stocks in other waters around the UK.

    In the same week, the UK secured catch limits worth a further £256m with the North East Atlantic coastal States, while an agreement with Norway last month will see the UK fishing industry benefit from fishing opportunities worth £5 million in 2023.

    Sustainability has been at the heart of the UK’s approach to all the negotiations to ensure key fish stocks are protected and to support the long-term viability of the UK fishing industry. Wherever possible, catch levels have been set in line with, or lower than, the level advised by scientists at the International Council for the Exploration of the Sea (ICES), and there is an estimated 13% increase in catch levels that align with ICES advice compared to last year.

    The outcome of annual fisheries negotiations will be published in the Secretary of State determination of fishing opportunities for British fishing boats by the end of the year.

    The UK has also started negotiations with the Faroe Islands on exchanges of fishing opportunities for 2023.

    £100m UK Seafood Fund

    The UK fishing industry is currently receiving a significant funding investment from the UK Government to help modernise its facilities, train and upskill fishermen, and invest in better scientific research on key fish stocks.

    Last month, Defra announced £20 million from the UK Seafood Fund had been awarded to expand processing facilities for popular British fish like Scottish salmon, mackerel and herring. A further £30 million is now available for infrastructure projects in the latest round of funding open for bids.

    Last week, five pioneering research projects were awarded over £3.5 million through the Fisheries Industry Science Partnership (FISP) scheme to gather vital evidence to inform how we manage our fisheries and protect marine habitats across the UK. Almost 30 projects have received funding through FISP so far, and the fourth and final round opened earlier this month, running until midday on 19 January 2022.

  • Douglas Ross – 2022 Speech on Alcohol Duty

    Douglas Ross – 2022 Speech on Alcohol Duty

    The speech made by Douglas Ross, the Conservative MP for Moray, in the House of Commons on 19 December 2022.

    Douglas Ross (Moray) (Con)

    It is encouraging to hear support from across the House for these duty reforms, which were originally announced as a manifesto commitment at Roseisle distillery in my constituency. Of course, Moray is home to more Scotch whisky distilleries than any other constituency in the House. [Interruption.] As my hon. Friend the Member for Milton Keynes South (Iain Stewart) says, many are very good ones. I have been pressing both the Chancellor and the Prime Minister to maintain the freeze on duty for Scotch whisky for as long as possible, which is important for the entire industry and the jobs that rely on it. Will the Exchequer Secretary take on board what the Father of the House said? When it comes to the Budget in March, will the Government listen to the industry, which has time after time proven wrong Treasury officials who predicted that an increase in duty would increase revenue to the Treasury? In fact, a freeze in duty increases revenue to the Treasury and it would be welcome to see that continuing.

    James Cartlidge

    I am extremely grateful to my hon. Friend, who speaks with great knowledge on these matters. He has been a consistent champion for the Scotch whisky industry, standing up for it in this place, whether on tariffs or duties. I know that he was lobbying the Chancellor and the Prime Minster to continue the freeze, so I hope that he is pleased with the result. On what happens going forward, I will engage with the Scotch whisky industry and indeed all the other alcohol sectors. The clear point is that the extension of the freeze is good news for every single sector and I hope that colleagues welcome that.

  • Stewart Hosie – 2022 Speech on Alcohol Duty

    Stewart Hosie – 2022 Speech on Alcohol Duty

    The speech made by Stewart Hosie, the SNP MP for Dundee East, in the House of Commons on 19 December 2022.

    I welcome the statement. I have long supported an alcohol content duty regime, and I hope that it delivers the fairness that the sector needs. As a gentle aside, may I say that we did not need Brexit to bring in this regime? The UK could have applied for a derogation, but it chose, over decades, not to do that.

    I have some technical questions. The previous Chancellor, the right hon. Member for Spelthorne (Kwasi Kwarteng), announced a one-year freeze on alcohol duty in “The Growth Plan 2022”; that was due to cost £545 million in 2023-24. The current Chancellor scrapped that, but anticipates an additional yield of £1.3 billion in 2023-24; that was in the autumn statement 2022. First, how can a one-year freeze cost £500 million, while its cancellation in the same year suddenly generates £1.3 billion of additional yield? Also, we have been told that the freeze is being reintroduced and will last until August. How much will that cost the Exchequer?

    The proposals following the post-2021 Budget consultation have been reported as having a modest cost of only £25 million next year—that was in the autumn statement Green Book. But this statement seems to suggest that the cost to the Exchequer of the draught beer relief scheme alone will be £100 million a year. Will the Minister explain what the net cost of this measure will be either to the Exchequer, or to the industry? As things stand, the numbers are not clear and in some cases do not add up.

    James Cartlidge

    I am glad that the right hon. Gentleman supports the principle of the reform package that will come into place next August. I hope Members across the House can do so. The cost obviously depends on what decision is made in the Budget next year. That is a matter for the Chancellor at the time. We know that that will be on 15 March, so there is not too long to wait.

    The right hon. Gentleman made the point that it was not necessary to leave the European Union to make these changes. To be clear, EU law does not allow member states to differentiate beverages on qualitative characteristics such as whether the product is on draught. EU law actively discourages any attempt to support the on-trade through the duty system. That is also true for a system based on ABV; by and large, that would have been very difficult as well. The fact is that this is a radical reform and it has been made possible by Brexit.

  • Peter Bottomley – 2022 Speech on Alcohol Duty

    Peter Bottomley – 2022 Speech on Alcohol Duty

    The speech made by Sir Peter Bottomley, the Father of the House, in the House of Commons on 19 December 2022.

    Like the hon. Member for Erith and Thamesmead (Abena Oppong-Asare), who speaks for the Opposition, I support what has been announced today. I declare an interest: I drink most things, except super-strength draught cider.

    On wine, using an average rate of 12.5% is right; stepped rates would not have worked, because growers do not know what strength a wine will be—the strength fluctuates naturally. A revenue-neutral level makes sense. I hope that this approach will continue beyond the 18 months.

    I hope that the Minister will consider whether farm-gate concessions can be made for the growing number of vineyards in this country. I hope that between now and the Budget the Chancellor will calculate the price and tax elasticity, because often, when duty rates are frozen, revenue goes up. There have been times when the rate has gone up and the revenue has gone down, which is perverse.

    James Cartlidge

    I am grateful to the Father of the House for his question—I do not think that I will ever get another that mentions both elasticity and high-strength cider; it was an interesting combination of points. He made a very good point about wine. I have enjoyed engaging with all the main alcohol sectors, mainly in November, in the run-up to the making of this decision. As he knows, we are requiring all wine between 11.5% and 14.5% ABV to be treated as though it were 12.5% ABV for the purpose of calculating the duty rate. That will apply for 18 months, so there is a transition. We have to ask ourselves: if that were made permanent, would it not undermine a regime that is ultimately based on taxation by strength? I understand my hon. Friend’s point and will continue to engage with the sector on it.