Issue 80
Current Alcohol Duty “Mess” Ripe for Reform Chancellor Told www.CLHNews.co.uk
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Chancellor Rishi Sunak is reportedly planning to overhaul alcohol duty in next week’s Autumn Budget, a move which may lead to a cut the prices of certain products, such as beer and wine. A review of the system was a commitment in the Conservative Party’s manifesto for the 2019 general election. The manifesto pledged an 'Alcohol Duty Review’ which stated: "Scotch whisky is a national export that supports 42,000 jobs across the UK. Yet the tax on each bottle of Scotch sold in this country represents almost three quarters of its price. That is why over the past two years we have frozen the duty on spirits, cutting the price of a bottle of Scotch by 30p. Now, we want to do more, which is why we will review alcohol duty to ensure
that our tax system is supporting British drink producers."
RIPE FOR REFORM The current system, which raises about £12 billion a year, is ripe for reform said Institute for Fiscal Studies. The existing duty per unit of alcohol varies massively depending on alcohol type, whether it is still or sparkling, and how strong it is. Depending on the strength of the alcohol the most tax efficient way to drink can be beer, or cider or still wine but not spirits or sparkling wine, and there is no good reason, they say, for such incoherence.
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