Doctors raise a glass to tax increases but industry curses

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Title – Doctors raise a glass to tax increases but industry curses
Source – The Times
Date – 13th March 2008

You do have to ask the question sometimes as to how the strategy of the government regarding duty on alcohol is really going to affect the binge drinking culture they like so much to complain about. At least Alistair Darling in his last budget seems to have ignored much of the rhetoric and spin regarding the latest increases and simply admitted it is a great way to bump up the coffers of the treasury.

This time it is not just this year but subsequent above inflation increases that the industry will have to swallow over the next 5 years. The consequences of this action are undoubtedly that more pubs will close over the coming years and that those that survive will struggle further. Can we expect a public outcry or MPs on the news at ten championing their constituents cause when they find themselves out of work like they do when a factory closes? No, it will just be the trickle of job losses business closures and the unnoticed change from a trickle to a torrent.
At a time when our economy is slowing and possibly faltering, should we be increasing taxes and increasing unemployment without a caveat to counteract these measures? More importantly are these measures really going to make the difference the doctors and others want, is 4 or 5 pence a shot / pint going to be the turning point that moves the binge drinkers and alcohol dependents in society into responsible citizens?

If anything the situation is going to get worse. Increasing the duty on alcohol will drive a further wedge between pubs and supermarkets price differential. Supermarkets have a duty to sell alcohol responsibly, but off-sales mean that they have no control after it leaves their store as to how, where and who consumes it, but they still have the financial clout to sell alcohol as loss-leaders. So the problems of binge drinking are hardly being addressed. Pubs and clubs at least have some control over the sale and consumption of alcohol on their premises, arguably some don’t take this responsibility seriously enough, but the authorities have the powers to deal with these rogues if they choose to, but pubs and clubs will have to absorb those costs or pass them on to the consumer. Surely the result is pushing people from pubs and clubs to supermarkets and uncontrolled consumption.

I wonder sometimes if the government has any solution for any problem but tax, tax tax. Does it work anywhere in any part of society? The cars, the roads, congestion, all are taxed, maybe that is the right way to push people onto public transport, but where is all that tax going, because there simply is not a suitable standard of public transport and much of the time public transport is still more expensive than the car! It does feel that the unimaginative government strategy is exactly the same with alcohol, tax, tax, tax, maybe alcohol should be heavily taxed, that is an argument that will continue, but is that really the only way to resolve the problem of excess consumption, in fact is it a solution at all?


The UK is one of the most heavily taxed countries in Europe on alcohol a bottle of wine here has on average £1.33 in duty, in France £0.02 and in Spain, Italy and Germany £0.00, yet they don’t have the same problems we seem to with the consumption of alcohol… maybe we should look for once at how others get things right and we get it seemingly so wrong, rather than being stubborn and continuing with a strategy of tax, tax, tax and no education, reward for responsible retailers and treating a population like children (who when treated that way will act that way), surely our governments know they are taking with the one hand and giving nothing back with the other. At least Alistair Darling made no excuses for increasing taxes, no bluff that he would help retailers that will struggle or Robin Hood tale, but rather all but admitted taking the easy route to additional tax income to cover the holes in the budget he was also was reluctant to talk about….



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