Rt Hon Lord Lilley

    Lord Lilley:

    To ask Her Majesty’s Government what revenue they anticipate from a full year of the temporary tariff regime announced on 13 March; and how much they would expect to raise if there were no change in the current tariff regime.

    Lord Young of Cookham:

    Under the current tariff regime, the independent Office for Budget Responsibility have forecast tariff revenue to be £3.5bn in 2019/20. In the event of a no deal it will not be possible to replicate our current trading arrangements. The yield raised from tariffs, under the temporary tariff regime, is likely to be highly sensitive to any behavioural response, wider economic conditions, and judgements on modelling assumptions taken by the Office for Budget Responsibility. It is therefore not possible to provide a firm estimate at this stage of a full year of the temporary tariff regime but in the event of no deal, the tariffs policy would be reflected in a future Office for Budget Responsibility fiscal forecast.