The 2020 spring budget has again left health groups dismayed by freezing all duties, which the IAS point out is the seventh year out of the last eight that alcohol duties failed to keep up with inflation.
Meanwhile, alcohol industry groups behind various campaigns to cut duties celebrated the news, claiming the move would help the industry in facing difficult times. However, industry campaign claims have been repeatedly questioned in several regards, notably the implication that tax rises on alcohol would lead to lower revenue, referred to as the Laffer curve. The Government's own analysis indicates the latest freeze in duties will come at a cost to the Treasury of just over £1bn to the year 2024–25.
As such, the Chancellor came under attack again for prioritising business interests over health. Balance North East said claims that cuts would help pubs were a myth and highlighted a regional survey which found 89% of publicans said alcohol duty cuts had no impact on their business, whilst 64% believed increasing supermarket prices would help the pub trade. The Royal Society for Public Health said real terms cuts on alcohol duty were 'another step backward' and were 'making a key contributor to population ill health more affordable once more', whilst Alcohol Research UK said the UK was 'lagging behind other countries'.
In other corners some positives could arguably be found, for instance a pledge of £262m for substance misuse services for people sleeping rough, although Collective Voice highlighted the context of cuts to the public health grant of £850m since 2014-15. Indeed, calls to end cuts to drug and alcohol services have continued to appear to fall on deaf ears. Ahead of the 2018 budget, Alcohol Research UK had called for a 1% increase in alcohol duties to raise £100 million each year which if invested in alcohol treatment could save the NHS and other public services around £300 million annually. The charity argued this would equate to just 5p more for an average bottle of wine and 3p more for a pint of beer.
The current Government's stance on alcohol policy looks set to come under fire from a range of alcohol and health groups who argue vital policy levers are not being utilised. Meanwhile, Wales recently followed Scotland's lead as a 50 pence MUP was introduced at the start of the month. Westminster had previously said it would be waiting to see what evidence emerged on MUP, but has since fallen quiet as early indications have looked positive north of the border.
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