Business & Finance
Should alcohol and cigarettes be more heavily taxed to fund key services?
Key Points
Should alcohol and cigarettes be more heavily taxed to fund key services? It's thought alcohol and cigarettes could be taxed more, as Chancellor John Healey looks for new sources of revenue to fund vital services across Britain Chancellor John Healey is set to give his inaugural Budget tomorrow and could set inflation-linked increases to booze duty while hitting smokers with higher taxes amid growing pressure to find key services - The Mirror asks, should these be taxed more heavily to fund...
Should alcohol and cigarettes be more heavily taxed to fund key services?
It's thought alcohol and cigarettes could be taxed more, as Chancellor John Healey looks for new sources of revenue to fund vital services across Britain
Chancellor John Healey is set to give his inaugural Budget tomorrow and could set inflation-linked increases to booze duty while hitting smokers with higher taxes amid growing pressure to find key services - The Mirror asks, should these be taxed more heavily to fund those services?
Drinkers have been warned the cost of a pint could rise by another 2p in the Budget. Wine could go up by 13p, whisky by 37p and gin up by a staggering 42p. Alcohol has been taxed according to its strength following a shake-up since 2023.
Former Chancellor Rachel Reeves confirmed a 3.66 per cent rise in all alcohol duties since last year's Budget. But there is now speculation Healey could raise booze duties tomorrow.
"Currently our brewers are forced to pay some of the highest rates of beer duty in Europe, twelve times more than Germany and Spain," said Emma McClarkin, CEO of the British Beer and Pub Association. "This Budget, the Government has a real opportunity to build on their support for the sector by freezing beer duty and increasing the draught discount.
"This would be an undisputed win-win meaning more affordable pints, greater investment, and more jobs." Prime Minister Andy Burnham has sought to help struggling pubs with a promised 20 per cent business rate cut, a move that had been welcomed by the industry.
Smokers will also be waiting to see if there are any further hikes in tobacco duty in Healey' Budget. Reeves' last Budget saw a further 57 p added to a packet of 20 cigarettes as well as 28p per 10g of cigars and 97p to a 30g packet of hand rolling tobacco.
Some economists have argued by taxing alcohol and cigarettes at a higher rate, it would serve two purposes. Higher taxation of the products could result in higher revenues to fund social care and other key services while also cutting the amount of these products, which are considered harmful to people's health if consumed regularly over time.