Local shops have urged Ministers to focus on the evidence about the proven benefits of any action before making changes to the alcohol tax regime.
Responding to the Treasury review into the subject ordered by the Chancellor, ACS (the Association of Convenience Stores) explained the sweeping implications of changes to the taxation system.
ACS chief executive James Lowman said: “Alcohol is a product sold and consumed responsibly by millions of people across the country. Interventions to increase duty would impact on all including the overwhelming majority who consume alcohol responsibly.
“We are therefore deeply sceptical that any measure that increase cost of alcohol across the board will deliver benefits that outweigh the massive harm to consumer interests.
“Evidence suggests that increased prices lead to less consumption, but not necessarily amongst those that present a risk to their health or to anti-social behaviour.
“These groups are the least responsive to price increases and other interventions based on behaviour change are more clearly effective.
“Ministers should also not forget the significant threat presented by the illegal trade in bootleg and counterfeit alcohol, a trade that will grow if legitimate prices increase dramatically.
“The illegal market is often controlled by criminal gangs without scruples and presents an immediate risk to often the most vulnerable in communities. If the Chancellor does decide to increase alcohol prices there needs to be investment to ensure the illicit trade is sufficiently tackled.
“ACS welcomes the review and is keen to understand more closely the evidence that the Treasury will be considering. We seek to play a constructive role in developing a policy that will work. “
The Treasury report on the issue is expected in the autumn. The ACS submission to the Treasury is available on the ACS website at www.acs.org.uk/submissions.
Source: ACS
