Question to the HM Treasury:

To ask the Chancellor of the Exchequer, what assessment his Department has made of the potential impact of lowered alcohol duty on (a) beer, (b) cider and (c) other alcoholic beverages on rates of harmful drinking among (i) young people and (ii) other age groups in the UK.

This question was answered on 14th March 2022
The Treasury has consulted public health groups on the impact of duty rates on harmful drinking as part of our alcohol duty review, and continues to monitor emerging evidence on this point.

For example, as set out in the summary of responses to the call for evidence published in October 2021, public health groups cited the correlation between cheap, high strength spirits (such as vodka) and alcohol-related harms, as the volume of drink needed to reach intoxication is smaller with higher strength drinks.

In response, the Treasury announced at Autumn Budget 2021 it would move to a new system that taxes all products in reference to the litres of pure alcohol they contain, as is currently the case for spirits. We have also announced a reduced rate for products of a lower alcohol by volume (ABV), to incentivise the production and consumption of lower strength drinks.

Further detail about the impact of our alcohol duty reforms on public health will be included in a tax information and impact note when the policy is final, or near final, in the usual way.