March 2020 |
In this blog we explain the main findings from an Alcohol Change UK-funded report on ‘Understanding the link between alcohol excises and the price of alcoholic drinks in UK supermarkets using scanner data’ by Dr Luca Panzone and Dr Viviana Albani.
Introduction
Why this report is important
If tax increases make consumers choose lower-strength products, then this policy is beneficial to health, as it means people will consume less alcohol overall.
What data did this report look at?
What happened to prices and spending?
The headline finding is that alcohol duty can change consumers’ behaviour due to increased prices, but they are less effective than they should be due to incomplete pass-through.
Implications
Because the current system of alcohol taxation doesn’t link the alcohol content with the tax, it’s less effective than it could be.
