Drop in drinking 'offsets tax rises', says alcohol industry

Falling alcohol consumption in the UK means "punitive" tax increases are unnecessary, according to the British Beer and Pub Association (BBPA).

The group says figures it compiled using data from HM Revenue and Customs shows that consumption fell by 3.2% in 2008.

And the BBPA says the Government's own alcohol harm impact assessment suggests that this equates to a saving of £804 million last year alone, with a saving of £8 billion over a ten-year period.

It is renewing its call on the Government ahead of the Budget to axe planned alcohol tax rises - up to 8% - signalled in the pre-Budget report, saying there is now "no justification" for this.

The call comes after the group met with Chancellor Alistair Darling and Business Secretary Peter Mandelson to discuss the Budget.

According to the BBPA there is also a consistent longer-term trend developing, with a 6% fall in alcohol consumption between 2004 and 2008 (9.5 litres to 8.9 litres of '100% alcohol' per head).

BBPA director of communications Mark Hastings said the downward trend was a result of the recession and the 'responsible drinking' message.

"These figures show that the perception of rising alcohol consumption in the UK is false.

"Based on the Government's own method of calculating alcohol related harm, the figures show that trends are cutting billions from the nation's alcohol harm bill.

"Government policy should be based on the facts, not reflect the myths on alcohol."

A spokesman for the Home Office told More Than Business News that they did not know how the BBPA had arrived at the saving calculation, and that the Government was now legislating for a mandatory alcohol industry code, as the voluntary approach had not worked.

IMAGE Dominic Lipinski/PA Wire