Higher Alcohol Taxes Welcome Help Against Cheap Drinks

Alcohol Concern’s Response to the 2008 Budget

Responding to the news that the 2008 Budget includes inflation-busting tax increases on beer, spirits and cider, Don Shenker, Acting Chief Executive of Alcohol Concern said:

"The government’s tax plan to finally address the issue of alcohol becoming more affordable with every passing year is welcome, and overdue. There is broad international agreement that price has a crucial part to play in substantially reducing harmful drinking. However for moderate tax hikes to work government must also force the big retailers to stop discounting drinks so deeply so that any rate increases can actually passed onto consumers. We call on ministers to use their considerable powers to achieve this. Over the past twenty years, as drinks have become cheaper, consumption has skyrocketed. Urgent action has been long overdue to reverse the tide.We also note that the modest tax increase announced today is expected to provide the Exchequer with an additional £600 million pounds this year, further underlining the immense value of the drinks market. With a small fraction of its total alcohol revenues government could radically transform the systems in place to support dependent drinkers"

Alcohol Concern