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Tory alcohol tax plans miss target

Posted in Latest reporters' blogs, Russell Parsons March 7th, 2008 by Russell Parsons

You know there is a bandwagon rolling when the UK’s opposition party starts making populist announcements.

The Conservative Party has unveiled its plans to rid the world of young binge-drinkers and their nasty anti-social ways.

Shadow Chancellor George Osborne announced targeted tax rises on ‘alcopops’, strong ciders and ‘other problem drinks associated with binge drinking’.

The Tories propose to then use the extra revenue raised to reduce tax on low strength beer and cider, adding that wines, spirits and 90 per cent of beer and cider consumed in the UK will be unaffected.

Two things spring instantly to my mind. Firstly, and with the risk of sounding a little liberal, the price of the drink is not the only issue, binge-boozing and anti-social behaviour are as much societal problems as they are the drinks consumed.

Secondly, won’t these young scoundrels just switch to the wines and spirits unaffected by the proposed changes in tax? Anyhow, when I was a teenager, I got my kicks drinking a home-made ‘cocktail’ of vodka and orange on the local park and as much as this is a fading memory, I suspect things have not changed so much.

Anyway, picking holes in proposed Conservative policy aside, where would this leave the much maligned drinks industry’s marketers?

Will Beverage Brands’ WKD and other so-called ‘alcopops’ makers have to reposition the brand given that the Tory’s tax plans may result in only the well-heeled and upwardly mobile being able to afford the drink?

Conversely, will we see the brewers of low strength ciders and beers reposition themselves as not only the safer option but the cheaper option too?