Chancellor Darling has announced excise duty increases which apply from Monday 17th March 2008. Ostensibly designed to curb binge drinking, most people seem to think this is just another way of increasing taxes.
Perhaps its the dour Presbyterian Scottish influence at play – although technically Darling is English. albeit with strong Scottish connections and MP for Edinburgh South. However, seeing as the duty on Scotch Whisky has also been raised maybe that is a tad unfair! The real problem is that alcohol duty is a soft touch for Budget day.
Unfortunately even the quick cross-channel trip to stock up at much lower French prices is not as good an option as it used to be – the exchange rate against the Euro is at its lowest since the the euro was introduced – e.g. €1.26 to the £ (13 March 08) – order online at the Post Office
The impact of the changes on retail prices for typical alcoholic drinks is equivalent to:
• 55 pence on a 70cl bottle of spirits @ 37.5% abv;
• 4 pence on a pint of beer;
• 3 pence on a litre of still cider;
• 14 pence on a 75cl bottle of sparkling cider;
• 14 pence on a 75cl bottle of wine
• 18 pence on a 75cl bottle of sparkling wine.
I think the increase from the Budget is ridiculous. They say we are heading to a recession as consumer spending is decreasing and there is a widening gap between the socio-economic groups, yet they add to this problem by increasing the prices of not only alcohol but petrol and food.
The recession will definitely be coming at this rate, and sooner than anticipated!