Lifestyle Economics

IEA Research quoted in Business Insider

Research by Christopher Snowdon quoted in Business Insider

Alcohol and the Public Purse: Do drinkers pay their way? by IEA Head of Political Economy Christopher Snowdon has been quoted in a Business Insider article on lower rates of smoking and drinking among young people.

“Falling revenue from alcohol and tobacco could pose a headache for the Chancellor, Jeremy Hunt, who is trying to address a £27.6 billion ($33.7 billion) deficit in Britain’s public finances. The equivalent of the Treasury Secretary also facing falling tax income from gasoline and diesel taxes as more EVs are sold.

“However, the analysis doesn’t take into account the potential upside of falling alcohol and tobacco consumption in terms of reduced demand for the UK’s public healthcare system. Alcohol-related harm is estimated to cost the National Health Service (NHS) in England £3.5 billion ($4.3 billion) a year.

“But a 2015 study by the Institute for Economic Affairs suggested the government was still coming off better from the current setup, with drinkers subsidizing non-drinkers to the tune of £6.5 billion ($7.9 billion).”

The full article can be read here.

You can also read a copy Alcohol and the Public Purse: Do drinkers pay their way? here.

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