# In the UK, is the tax revenue from alcohol greater than the costs on the NHS?

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#1
i was wondering if anyone has any statistics of whether this horrible binge drinking culture in the UK is profitable for the government or not i.e. whether tax revenue is greater than the costs the NHS has to bear.
3
8 years ago
#2
Well the NHS costs £98.7 billion in England (specifically excluding Wales, Scotland, NI and dependencies since I couldn't find figures for them immediately)
Alcohol duty contributes £14.6 billion

Fairly simple maths for you
4
8 years ago
#3
Also, even if you ignore the duty just from Alcohol, there is probably a considerable income that comes from taxing those that sell Alcohol ie companies and etc.
0
#4
(Original post by Patriot Rich)
Well the NHS costs £98.7 billion in England (specifically excluding Wales, Scotland, NI and dependencies since I couldn't find figures for them immediately)
Alcohol duty contributes £14.6 billion

Fairly simple maths for you
is that NHS cost just for alcohol related incidents or the whole NHS? i only want the alcohol related incidents costs please.
0
8 years ago
#5
(Original post by DorianGrayism)
Also, even if you ignore the duty just from Alcohol, there is probably a considerable income that comes from taxing those that sell Alcohol ie companies and etc.
Erm isn't that just the tax, seeing as a tax on alcohol affects both suppliers and consumers? :/
0
8 years ago
#6
I just googled the numbers in 30 seconds.
1
8 years ago
#7
(Original post by Movember)
i was wondering if anyone has any statistics of whether this horrible binge drinking culture in the UK is profitable for the government or not i.e. whether tax revenue is greater than the costs the NHS has to bear.
Alcohol as a whole contributes around 14.6 billion to UK tax revenues

http://www.bbc.co.uk/news/uk-11170814

Cost to the NHS is around 3 billion

http://www.ic.nhs.uk/pubs/alcohol09

Although these two figures alone do not = the UK government making money off binge drinking.
0
8 years ago
#8
(Original post by 4mar_ar5en4l)
Erm isn't that just the tax, seeing as a tax on alcohol affects both suppliers and consumers? :/
I am not sure what you mean. I am talking about taxing the profits of alcohol companies and other businesses that profit from the sale of alcohol rather than alcohol duty.
0
8 years ago
#9
(Original post by DorianGrayism)
I am not sure what you mean. I am talking about taxing the profits of alcohol companies and other businesses that profit from the sale of alcohol rather than alcohol duty.
Ah okay, I thought you were implying that there is a seperate tax put on firms for every such alcoholic product that they sold.
0
8 years ago
#10
If alcohol tax was strictly imposed to offset the cost of alcohol related treatment incurred by the state it would be apparent in the method of taxation. Alcohol levy is imposed according to value instead of volume.

For instance; say you have two bottles of wine. One is a ten dollar bottle and one is a hundred dollar bottle. Both bottles contain appx. 8 standard drinks in them. So they should be taxed equally as the amount of alcohol and burden towards treating alcohol related illness is the same. The state however elects to tax for a percentage of the value and the hundred dollar bottle will have 10x the tax as the cheap bottle. It's ironic that the person who purchases the cheap bottle is much more likely to be a burden on the system.

Clearly alcohol tax is intended to be a method of raising revenue and not offsetting costs.
2
8 years ago
#11
There are lots of other costs that excessive alcohol consumption causes.

For example, the cost of policing binge drinkers at the weekend, cost of accidents caused by people driving over the limit, work days lost due to people being unable to work or under performing because they drunk too much etc.
1
8 years ago
#12
(Original post by Movember)
i was wondering if anyone has any statistics of whether this horrible binge drinking culture in the UK is profitable for the government or not i.e. whether tax revenue is greater than the costs the NHS has to bear.
I dunno how much booze does the NHS buy?
1
8 years ago
#13
Well, if Alchohol Duty contributes £14.6 billion and alcohol related abuse "costs the NHS £2.7bn a year" then yes they do make a profit. But that 2.7 is still a lot of wasted money.

Source: http://www.bbc.co.uk/news/uk-politics-17036826

Don't forget there are all sorts of costs linked to binge drinking other than the cost to NHS.
0
8 years ago
#14
(Original post by Movember)
is that NHS cost just for alcohol related incidents or the whole NHS? i only want the alcohol related incidents costs please.
How do you define that?

The guy whos physical condition is just awful because of drinking 5 pints a day all year round?
People who fall and injure themselves when drunk? (even if they don't report it til later?)

Or just the immediate aftermath of nights out?

This is a VERY difficult thing to define statistics for.
0
8 years ago
#15
But think of all the non-financial benefits that people gain from drinking alcohol. Think of all the additional utility they gain from a nice cold pint or a crisp glass of wine with dinner. That must be worth billions.

So other than the fact that alcohol makes us loads of money, it also makes us all really really happy.
3
8 years ago
#16
(Original post by Darth Stewie)
Alcohol as a whole contributes around 14.6 billion to UK tax revenues

http://www.bbc.co.uk/news/uk-11170814

Cost to the NHS is around 3 billion

http://www.ic.nhs.uk/pubs/alcohol09

Although these two figures alone do not = the UK government making money off binge drinking.
No, but what you could happily conclude is that the tax on alcohol more than offsets for the negative externalities caused by any medical side effects of our national love affair.
1
8 years ago
#17
(Original post by py0alb)
No, but what you could happily conclude is that the tax on alcohol more than offsets for the negative externalities caused by any medical side effects of our national love affair.
I would agree that is a fair conclusion.
0
8 years ago
#18
(Original post by Maker)
There are lots of other costs that excessive alcohol consumption causes.

For example, the cost of policing binge drinkers at the weekend, cost of accidents caused by people driving over the limit, work days lost due to people being unable to work or under performing because they drunk too much etc.
What about all of the pregnancies conceived due to drunken flings.

It would also be interesting if we are talking about binge drinkers to look at the long term net impact of babies conceived by binge drunk parents. How many of them will go on to make a net positive tax contribution and how many will end up being another way of getting a flat and child benefit and go on to live a life of dole...
0
8 years ago
#19
(Original post by Xanth)
Well, if Alchohol Duty contributes £14.6 billion and alcohol related abuse "costs the NHS £2.7bn a year" then yes they do make a profit. But that 2.7 is still a lot of wasted money.

Source: http://www.bbc.co.uk/news/uk-politics-17036826

Don't forget there are all sorts of costs linked to binge drinking other than the cost to NHS.

Remember that alcohol also provides hundreds of thousands possibly a million + jobs in the uK with pubs, clubs, bars, restaurants, off-licences etc. If we only look at the economics, I belief society and the exchequer benefits much more from alcohol than the harm it causes
0
8 years ago
#20
In terms of monetary value, alcohol consumption definitely does benefit the UK government, sad as it may be.
0
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