Tag Archives: tax

Go with the cash flow

: Image by Getty Images via Daylife

… or “How I will do my bit for the economy of this country via the wine aisle”

For the last few years, pretty much since I started blogging, I’ve had something to say about the underhand way that the government uses Duty on wine to line their coffers, usually at the expense of the consumer, but by implication also affecting everyone else in the chain, from retailer to producer.

I have tried to argue that our Duty system, with high taxes on EVERY bottle of wine, no matter how good (or poor), have little impact on whether consumers drink to excess, which is supposed to be one of the reasons to raise the price.

I have tried to argue that lowering taxes would enable producers to invest more in the quality of the product and their communication/marketing, educating consumers to drink better, and drink more responsibly.

To no avail, of course.

Earlier this year, the Treasury admitted in a letter (during a campaign by Le Beast wines, Harpers, Drinks Business and Off Licence News) that:

“…alcohol duty is an important revenue stream for the government”

and

“The alcohol duty increases announced at Budget were not designed to tackle problem drinking but they will play their part in ensuring we can continue to fund the Government’s spending priorities.”

It seems that the anti-alcohol lobby and politicians are allowed to use these as justifications for putting Duty up, but when they get the money, they can then spend it on whatever they wish.

So, I’m changing tack.

Let’s be realistic: If the government needs money to shore up our economy and get people back to work (or keep them in work), then they will be forced to raise taxes. They could*:

tax me harder on my income, thus making me have to work longer/harder
tax me more on stuff I buy (VAT), thus discouraging me from buying that ‘stuff’ and thus not making money OR,
raise money from me while I am enjoying one of life’s real pleasures; drinking wine

To be honest, thinking about it like this (as I did when I went to sleep last night), I would rather be paying them extra dosh while I have fun, not while I work (of course, in my case I’m doing both).

So, Mr Chancellor (or simply Darling as we will now call him), I’m not excusing you. You could still do A LOT more to support wine businesses, producers, retailers, consumers and the health of this country, but as you do not seem to be prepared to do this, I guess I will just have to do my bit for the economy of this country via the wine aisle.

I hope you appreciate it!

And, Darling, when we start to emerge from this fiscal black hole you have helped to get us into, I trust you will do the decent thing and engage in a proper dialogue about what is actually good for the many responsible drinkers in this country.

Now, I’m off to pay some taxes, … by the glass.

* Of course, I suspect they’ll do all 3 of course! Watch out for 20% VAT, higher income tax and increases on Duty as a triple-whammy

Open minds for troubled times

4 Replies

: Come on in for an interview!
Image by tommy forbes via Flickr

I’ve reported, commented and complained before on this blog about how the UK government treats consumers and business when it comes to alcohol.

My position has usually been one of incredulity, cynicism and anger at the decisions being taken by politicians, in particular when it comes to taxation of alcohol.

I’d like to extend an offer to a politician or civil servant to explain to me, in person, what this country’s government is doing, and why.

I was prompted to write this post by the announcement that a UK parliamentary committee was to be set up to examine:

… alcohol-related health problems and the consequences of these for the NHS, plus the role of the alcohol industry, police and government departments in addressing alcohol-related harm. [as well as] … examine “whether the drinking culture in England should change, and, if so, how”. (from just-drinks)

Just my sort of question!

Governments and politicians like to be SEEN to be doing something, no matter how ineffective in practice. In general, I do believe that politicians are scared of talking sense about alcohol (or many matters of real personal choice for that matter) and governments are quite happy to continue to be able raise lots of money from a ‘sin tax‘.

The problem is that the government has become dependent on the money raised from Duty on alcohol. They couch their revenue generation as a “strategy” to combat alcohol abuse whilst damaging businesses that could help to change people’s attitudes to alcohol and still, in my opinion, not doing nearly enough to address the underlying causes of that abusive behaviour.

I think many in the wine business in particular would probably agree.

HOWEVER, I will also admit that my experience is limited. I work with great wines, wines made by people who care about their product and which is sold mainly to those who appreciate them. I don’t have much day to day experience of the front line of a binge-drinking culture that I admit does exist in places in this country.

So I’d like to extend an offer to a politician or civil servant to explain to me, in person, what this country’s government is doing, and why. I don’t want a press release, I want a discussion. I’m prepared to post the results on here, either as a new post or in the comments. I would even consider filming a meeting and putting it on the blog for others to view.

Is that you? Or maybe, you know someone who could come along to chat? Let them know!

I am not a campaigner with an agenda as such. I’m not promising those who agree with me to be the best prepared, most vocal champion of the alcohol business (there are people like the WSTA for that). I am not a politician, nor expert debater. However, the government needs to convince me, and people like me, if we are to support their current approach, and if they can’t, then listen to us about finding another way forward.

I’ll even give you an idea of the questions:

What evidence is there that high duty rates stop young people from drinking too much?
What meaningful dialogue can you point to that shows you admit that alcohol consumption is a perfectly acceptable part of our society & culture in moderation? Have you ever done anything other than preach?
By focusing on the price/cost mechanic, are you not damaging small, independent importers/retailers who might engender a respect/appreciation for alcohol, and instead driven people to the multiple grocers, with their massive purchasing power to offset that duty cost, where no such education takes place?
Is the excess consumption of alcohol not more closely related to opportunity IN GENERAL, rather than opportunity to buy alcohol? Would fewer kids get blind drunk if you inspired them with alternatives for their time & effort, rather than chastising them?
What about the law-abiding middle classes of moderate consumers who are being criticised for their alcohol consumption? Where is the data to back your 21 units safe limit campaign?

These are just some of the questions off the top of my head. If you have any others you’d like to ask, let me know.

So, then, who’s willing to try and convince me? There’s a chair waiting!

The British government’s sad attempt at curbing binge drinking: Banning happy hour (gadling.com)
Should you let your teenagers drink? (telegraph.co.uk)
Middleclass wine drinkers targeted in ‘meanspirited’ campaign by church and police (telegraph.co.uk)
‘We’re in denial’ on alcohol abuse, Inuit politician says (cbc.ca)

Binge drinking and tax

3 Replies

I want to comment on the latest moves to increase the tax on alcohol in the UK ostensibly to address the issues of “problem” drinking.

Unfortunately I don’t even know where to start and I am rushed.

I’ve commented before that governments seem to be unable to think straight when it comes to alcohol. They need to be seen to do something because the media (in particular) loves to act all puritanical when it comes to bashing politicians (whilst simultaneously celebrating the outrageous lifestyles of certain ‘celebrities’).

This means that politicians can use very simplistic solutions that both please the media hacks and generate revenue for the Treasury whilst claiming to be acting in the public good. Unfortunately it is usually rubbish.

Raising duty on alcohol even further will not do anything to stop underage drinking, or weekend binge drinking, or even to reduce alcoholism. All it does is tax the vast majority who do drink sensibly. Not only that, but it perpetuates the drive towards low-cost, mass produced drinks brands that can afford to counter the price increases and build market share. These drinks do not have the kind of history or role in our society that encourages responsible enjoyment of the alcohol. Their goal is bigger volume so as to generate the necessary economies of scale to justify their investments.

The effect is to kill off any independent producers’ & retailers’ markets, and with them the chance of a mature drinking culture.

PLEASE lets have a sensible discussion about WHY we drink too excess in the UK, and other parts of the world (because we do) before we kill off the most sensible way out of this situation.

Tax me baby, one more time

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Tag Archives: tax

Go with the cash flow

Open minds for troubled times

Binge drinking and tax

Tax me baby, one more time

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