Push to increase the cost of alcohol annually in the UK
The Institute for Public Policy Research (IPPR) says the government should look at increasing the price of alcohol in the UK to help reduce the harm it causes to the workforce.
The think tank notes that the government has a range of tools at its disposal to tackle alcohol-related harm, from targeting labelling and advertising to restricting when and where alcohol can be sold.
Evidence suggests that interventions that affect the price of alcohol are likely to be the most successful in tackling harm, it said. “There is a strong case for policy interventions that increase the price of
all alcohol products. In recent decades, alcohol has become increasingly
affordable.”
It added that It added that when comparing alcohol prices with households’ disposable income per head of population, alcohol was 91% more affordable in 2023 than in 198, and 28% more affordable than in 2013.
“Updating alcohol duty rates annually by reintroducing the alcohol duty escalator is a straightforward way to increase the price of alcohol across the board, while ensuring that the alcohol industry pays its fair share towards the cost of harm it generates,” the IPPR said.
“Action is especially needed on the price of the cheapest, strongest drinks, which cause the most harm. The government could standardise duty rates across all alcohol products with the same alcohol by volume (ABV). This would mean, for instance, that cider would be taxed at the same rate as other drinks with the same ABV, reducing incentives to produce and consume cheap, strong cider.”
Additionally, the group noted that a minimum unit price on all alcohol could be set. Minimum unit pricing is already in place in Scotland (65p per unit) and Wales (50p per unit). This means a 10-unit bottle of wine cannot be sold for less than £6.50, and a standard pint of beer cannot be sold for less than £1.63.
“Historically, tackling harmful alcohol consumption has proven challenging. We live in a society where alcohol often takes centre stage, particularly when it comes to how we socialise and celebrate,” the IPPR said.
“Alcohol harm is often treated as a failure of willpower, and a problem that only affects a minority of ‘other’ people, rather than a failure to tackle the environmental factors that encourage alcohol consumption and make it harder for people to change their drinking habits. The alcohol industry plays a significant role in emphasising alcohol’s centrality to social life and downplaying its cross-cutting harms.”
