View this report
- In the October 2021 Budget there were two announcements:
- A new alcohol duty system was announced
- All alcohol duty rates were frozen for another year
- The Chancellor proposed a new alcohol duty system to come into effect from 2023. In the new system, all products would be taxed according to their strength
- This is a sensible approach and the right direction towards improved public health, as long as the tax rates are set at an appropriate level
- Cider is still being preferentially treated with lower rates than the same strength beer, which is likely to continue to cause harm
- Alcohol duties were frozen across the board once again, making this the ninth year out of ten that duty has failed to keep up with inflation
- In real terms, beer duty is now 28% lower than in 2012/13, cider and spirits duty are 21% lower, and wine duty is 13% lower
- Cuts and freezes to alcohol duty have contributed to the growing affordability of alcohol, leading to greater health harms: changes in alcohol duty policy between 2012-2019 have been linked to over 2,200 additional deaths
- Cumulatively, duty cuts will cost the Treasury over £18.9 billion from 2013-2027
View this report