Wednesday 6th December 2006

Treasury refusing to think of children’s health over alcopops taxes, says Institute of Alcohol Studies

Higher taxes on alcohol – and particularly the alcopops targeted at adolescents – would reduce the toll of binge-drinking among young people. The Health Secretary, the Institute of Alcohol Studies and nearly the entire health research community knows it – but the Chancellor seemingly doesn’t, according to today’s Pre-Budget Report.

The Institute of Alcohol Studies is today calling on the Chancellor to consider the scientific evidence and raise taxes on all alcoholic drinks, and particularly alcopops, when the final Budget comes around in 2007.   Andrew McNeill, the Institute’s director, said “Taxes will not revolutionize British drinking culture – but all the scientific evidence shows they would be the strongest first step in reducing levels of alcohol-related harm in our young people.”

This October, Health Secretary Patricia Hewitt controversially revealed that she was asking the Chancellor to  " really increase taxes on alcohol, (…) particularly things like alcopops and some of the stuff that quite a lot of teenage boys and girls are drinking because we've got a real problem with binge drinking among young people."  The Treasury in response suggested that to unravel the current taxation structure in this way would take at least two years and have to involve discussions with the European Commission. Yet taxes on alcopops have already been successfully introduced in Denmark, France, Germany, but also outside the EU, in Switzerland, making them expensive than other drinks of the same strength.

In fact, Hewitt’s argument – later clarified as her ‘personal’ view – simply follows a number of august medical bodies, including the Advisory Council on the Misuse of Drugs and the Royal College of Physicians among others.  A wealth of scientific evidence shows that higher taxes lead to lower levels of harm – from lower cirrhosis rates to decreased levels of assault.  These effects are particularly strong for young people, who have less disposable income and are therefore more responsive to price.

Who drinks alcopops? 

Evidence from official Government research shows that among boys, alcopops are most popular among underage drinkers – and even amongst underage drinkers, they are more popular among 11-12 year olds than ‘older’ drinkers at 15.  Among girls, alcopops (and spirits) are the most popular drinks for all young girls and women aged 11 to 24 , but are much less popular with older age groups.  The two most popular brands among 11-12 year olds for both boys and girls are alcopops – WKD and Bacardi Breezer. 

However, taxation should be looked at in a broader context; in England and Wales, for example, amongst young people aged 11 to 15 years old , 75% of girls’ and 85% of boys’ alcohol consumption was centred on beer or cider, the most common drink for both genders.  As the Institute’s chief economist, Gustavo Rinaldi, points out, “Tax rises on alcopops will reduce consumption of only one type of drink, but tax rises across the board are likely to have a stronger effect in reducing alcohol-related harm in young people.”

 

Notes to Editors
The Institute of Alcohol Studies is an independent organisation with the broad aim of increasing awareness of alcohol related issues in society. The Institute of Alcohol Studies advocates the prevention of alcohol related harm through effective evidence based alcohol policy http://www.ias.org.uk