Tories Tax Plans To Curb Boozing, Encourage Marriage

by Robert Lee, Tax-News.com, London

12 October 2009

The UK Conservative party has unveiled new plans to increase tax on certain alcoholic drinks and to give married couples a fairer deal in the tax and benefits system.

In an attempt to tackle Britain's notorious 'binge drinking' culture and curb anti-social behaviour, party health spokesman Chris Graying announced during the party's annual conference in Manchester a "radical" plan to introduce significant price (tax) increases on certain high-strength beers, ciders and 'alcopops' which are thought to be at the root of the problem. As a result, a 4-pack of super-strength beer will be GBP1.30 (USD2.08) more expensive, a 2-litre bottle of super-strength cider will be 84p more expensive and large bottles of alcopop will be up to GBP1.50 more expensive.

The Conservatives hope that the tax increases will lead to a reduction in the sale of the offending beverages and Grayling accused the incumbent Labour government of "utterly failing to get a grip" on the social problems caused by excessive drinking. However, the drinks industry is likely to argue that alcohol taxes in the UK are already among the highest in Europe, and will merely lead to job losses in the industry. A pre-announced 2% increase in excise tax on beer is already due to take effect in 2010.

According to the British Beer and Pub Association, the last two government budgets have seen a 20% increase in beer tax, which alone has added more than GBP600m to the industry’s tax bill.

The Tories also intend to use the tax and benefits system to promote marriage and families, although shadow minister for families Maria Miller was short on specifics in this area during her speech to the party conference.

"It's empirically proven that marriage provides a stable framework for our lives. With the evidence right in front of us, it's madness not to support marriage. That's why we're committed to introducing the recognition of marriage in the tax and benefit system," Miller said.

Earlier in conference week, shadow chancellor George Osborne announced proposals to give new companies a National Insurance tax 'holiday' for the first two years of a Conservative government.

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