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UK alcohol tax hike will push buyers abroad

“standfirst”>A new survey supports what many in the drinks trade already fear – that increased taxes on wine and spirits will encourage more cross channel shopping.

 
The survey, conducted online between 16th and 21st November, shows that 3 out of 4 UK regular wine drinkers (74%) already think that current taxes on alcohol are too high and a third of this group (31%) say they would go abroad more often to buy drink if taxes on wine and spirits were increased significantly (25p/bottle on wine or 50p/bottle on spirits).


The information collected by Wine Intelligence also shows that the British Government risks losing touch with middle-class voters if it listens to groups calling for significantly higher taxes on alcohol.


Furthermore, the survey revealed that for 92% of people, 24-hour licensing laws have not made them visit pubs and bars more often. At the same time, the survey shows over 90% of people do not consume more alcohol in pubs and bars since the laws came into effect. 

Commenting on the results, Jeremy Beadles, chief executive of the Wine and Spirit Trade Association (WSTA), said: “The public don’t want tax rises on alcohol full stop and the Government risks alienating swathes of middle class voters if they go ahead anyway. What people do want is a targeted campaign to deal with problem drinkers where they arise through better enforcement of existing laws and more education.”

He added, “People are right to want to reduce problem drinking but we have to act on real evidence. The Government’s own figures show alcohol consumption is dropping and the number of 24-hour licenses is still tiny. This survey only goes further to show people aren’t all rushing out to drink long into the night.”

The survey comes after reports that the Government is being urged to increase taxes on alcohol by as much as 25% in 2008.


Patrick Schmitt, 05.12.07


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