Income Tax (Charge)

Cat Smith Excerpts

Monday 4th November 2024 Commons Chamber

[Cat Smith (Lancaster and Wyre) (Lab)]

The theme of today’s debate is the effect of the budget on working people. In the UK, it is estimated that 17 million working days are lost each year due to alcohol-related sickness. It is not just days lost; it is also decreased productivity, because alcohol abuse can lead to employees arriving late for work and being absent more often. Some workplace cultures encourage drinking—I think on that point, colleagues, we have to take a look at our own workplace. As we sit here, imagine for a moment that every seat in the Chamber was full but that, instead of seeing our colleagues, we could see the faces of those lost to alcohol harm. That is the reality: every week, the equivalent of this entire Chamber dies because of alcohol.

Just before the election was called, I was informed that as a district, Lancaster has the highest rate of alcohol-related deaths in England. That led me to look more into the issue in the hope of finding solutions to it. I discovered that since 2010, deaths from alcohol across the UK have risen by 42%. One of the main reasons is that alcohol has become much more affordable, due to successive Governments cutting alcohol duty rates—short-sighted and naive decision making that is out of step with the evidence that has come from experts for years. The knock-on effect on our public finances and wider economy is clear. The Institute of Alcohol Studies recently found that alcohol harm costs our society more than £27 billion a year.

Fortunately, however, there is also abundant evidence about what works to reduce alcohol consumption and harm, while raising much-needed revenue for vital public services. The World Health Organisation identifies tackling alcohol affordability as the most effective and cost-effective way of reducing alcohol harm across the world. Alcohol duty is best placed to do that, and has the advantage of also raising revenue for the Treasury. The duty revenue should cover the costs of harm, but currently it covers barely half the cost of the harm to society.

My plea to those on the Government Front Bench is that they stop placating the multi-billion-pound alcohol industry under the guise of helping pubs. Almost every time duty rates have been cut, Chancellors have proclaimed it as a victory for pubs—but that simply is not true. It helps supermarkets far more, allowing them to maintain much cheaper prices on alcohol. The only time in recent decades that that gap did not grow was under the last Labour Government, which introduced a duty escalator, increasing duty above inflation each year. During that period, the death rate from alcohol steadily fell.

Although I welcome the vast majority of the content of this Budget, I implore those on the Government Front Bench to look again at the cost of alcohol to our society and at how we address deaths from alcohol.