Health campaigners slam end of booze ‘super tax’

While the recent UK Budget was warmly welcomed by the drinks industry, politicians and health campaigners have criticised the end of the alcohol tax escalator.

George Osborne’s decision to scrap the UK’s “super tax” on alcohol has been criticised by some politicians and health campaigners

On Wednesday 19 March, Chancellor George Osborne announced that the UK’s automatic tax escalator would be scrapped and spirits duty frozen as part of his Budget Statement for the next financial year.

Members of the drinks trade have long criticised the “debilitating” tax escalator, which has seen duty on wine and spirits increase 2% above the rate of inflation since its introduction in 2008.

The Scotch Whisky Association (SWA), Wine and Spirits Trade Association (WSTA) and the Taxpayers’ Alliance launched the Call Time on Duty campaign in February 2014, urging the Chancellor to scrap the measure and freeze duty.

However, Osborne’s decision to grant to these requests has resulted in many commentators claiming this was a strategic political move to sweeten Scottish consumers ahead of the country’s referendum on independence later this year.

Announcing the Budget to Parliament, Osborne said: “Scottish Whisky is a huge British success story. To support that industry, instead of raising duties on whisky and other spirits, I am today going to freeze them.”

Yet the Scottish National Party (SNP), ardent campaigners for Scottish independence, responded by claiming “sticking with the Westminster system will leave Scotland with a severe hangover.”

‘Staggering’ decision

Meanwhile health campaigners have described the changes as “staggering” and warned of a negative affect on public health.

Dr Evelyn Gillan, chief executive of Alcohol Focus Scotland, said: “No-one should be surprised that the spirits industry, represented by the Scotch Whisky Association, campaigned against alcohol duty increases just as they have fronted the industry campaign against minimum unit pricing.

“What is surprising is that a number of MPs from parties which have supported alcohol price controls in Scotland appear to have supported them.”

Dr Peter Rice, chairman of Scottish Health Action on Alcohol Problems, also describes the Chancellor’s announcement as “disappointing”.

However, Osborne claimed that the Government’s recently announcedban on sales of below cost alcohol in supermarkets, was a “more targeted approach” to tackle excessive drinking than the escalator.