Contribution
We will look in the round at the changes that were implemented in 2023. I do not want to rush to implement something that does not work for the alcohol industry as a whole and is not fair or proportionate. But I understand the points that have been raised—they are well made and I have been listening.
The hon. Member for Farnham and Bordon also raised the cumulative impact on the wine industry of various changes that have been made by previous Governments, and the current Government, including around packaging. That does go to a big-picture point that is contested in this place about the tax rises implemented in the Budget last year. It is my view, and the view of the Chancellor and the Government, that in the round we had to make those decisions to raise revenue. I understand that it led to additional taxation on businesses, but that was on the largest businesses—around half of businesses, those with the fewest employees, are not paying any additional national insurance as a result of the changes last year. But I understand that there was an impact on those firms that had to absorb those additional taxation levels.
The Government think that it was the right decision in order to raise revenue to fund our public services and ensure that borrowing was not increased more than is sustainable. It is right that the Government ensure that we borrow to invest in the future of this country, something I wish the previous Government had done when interest rates were down at 0.5%. On a serious point, as the Minister with responsibility for taxation policy and the Treasury, I am looking closely at the impact of all the changes that have been introduced in previous years that require compliance and burden for business. We have to look carefully at them, because we want to see businesses growing, thriving and being able to hire more people and expand.
On business rates specifically, the Chancellor will come forward at the Budget with the permanently lower multipliers for retail, hospitality and leisure. That policy was set out in our manifesto and we will announce the detail at the Budget.
Let me turn to the Liberal Democrat spokesperson, the hon. Member for Witney (Charlie Maynard). I was glad to hear a shout-out for my hometown of Witney—I went to Wood Green school in his constituency; it is a wonderful part of the world. He, too, raised the point that one of the challenges with the move to the new system is the additional bands. If we look at it on a chart, the line is flat because the rate is the same, but of course I am aware that, depending on the ABV, producers are at different points on that line. That is something they have to deal with, and he is right that it is maybe more of a challenge for those who are producing wine and growing products. I do understand that; the point was well made, and there will be a review of the tax three years after implementation.
The hon. Member for Aberdeenshire North and Moray East (Seamus Logan) mentioned Scotch whisky and was interested to hear from me about the support that the Government are providing to the industry. I would say that the industry is set to be one of the biggest beneficiaries from the trade deal with India, which is set to reduce tariffs from 150% to 75% initially and then to 40% over time.
I do not think I have reached every single question that Members raised, but I hope they feel that I have covered the points that were made. To conclude, our Government are dedicated to supporting the UK wine industry through a range of measures, including ensuring an alcohol duty system that is fair and proportionate. I thank the hon. Member for Farnham and Bordon for securing the debate. I share his pride in this growing British success story and look forward to further discussions, including with WineGB and the Wine and Spirit Trade Association—tomorrow, in fact—about how we can build a prosperous and sustainable future for UK wine.