In the Budget announced on 3 March 2021, the Chancellor chose to freeze duty on all alcohol. This marks the eighth year out of the last nine that alcohol duties have failed to keep up with inflation, and misses a key opportunity to address a worsening crisis.
Read our statement below. You can also
read this fascinating blog by Colin Angus of the Sheffield Alcohol Research Group on why the freeze won’t, in reality, help the hospitality sector.
Lucy Holmes, Director of Research and Policy Development, said:
“The government has missed a key opportunity to support the UK’s recovery from the pandemic by reducing both a significant burden on public services, and the unacceptable, avoidable harm caused by alcohol.
"The government claims this real-terms cut in alcohol duty is aimed at helping the hospitality industry, but it’s the big supermarkets and huge multinational alcohol producers who stand to benefit.
"Alcohol harm is estimated to cost between £27 billion and £52 billion each year - more than twice the amount raised in duty. The cost of this year's freeze will be £315 million, meaning the cost of duty freezes since 2013 has now topped £6.5bn.
"But this is about much more than money. Last month the Office of National Statistics reported that in the first nine months of 2020, deaths as a result of alcohol were the highest since data collection began in 2001. And the harm caused by alcohol goes beyond this totally avoidable loss of life – the harm ripples out, affecting children, families and communities.”