Thursday, 3 September 2015

How drinkers subsidise teetotallers

I have a new IEA report today looking at the costs and benefits to the treasury of alcohol consumption. As far as I know, this is the first study of its kind in England (or the UK). This is surprising when you consider that estimates of 'societal' or 'wider economic' costs are invariably reported as being costs to the taxpayer.

So what is the cost to public services? I've used the most recent figures and the best methodology, and it is almost certainly no higher than £3.9 billion per year. That's quite a bit of money, but nowhere near as much as the £10.4 billion paid by English drinkers in alcohol taxes. In other words, drinkers are paying more than their fair share and teetotallers are being subsidised.

The report is free to download here.

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