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In the UK, is the tax revenue from alcohol greater than the costs on the NHS?
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Movember
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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.
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Patriot Rich
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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
Alcohol duty contributes £14.6 billion
Fairly simple maths for you
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DorianGrayism
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#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.
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Movember
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#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
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
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username664275
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#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.
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.
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Dirac Delta Function
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Darth Stewie
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#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.
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.
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.
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DorianGrayism
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#8
(Original post by 4mar_ar5en4l)
Erm isn't that just the tax, seeing as a tax on alcohol affects both suppliers and consumers? :/
Erm isn't that just the tax, seeing as a tax on alcohol affects both suppliers and consumers? :/
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username664275
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#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.
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.
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ckingalt
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#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.
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.
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Maker
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#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.
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.
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GunnerBill
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#12
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#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 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.
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Xanth
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#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.
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.
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TShadow383
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#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.
is that NHS cost just for alcohol related incidents or the whole NHS? i only want the alcohol related incidents costs please.
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.
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py0alb
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#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.
So other than the fact that alcohol makes us loads of money, it also makes us all really really happy.
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py0alb
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#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.
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.
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Darth Stewie
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#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.
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.
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MagicNMedicine
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#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.
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.
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...
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bkeevin
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#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.
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
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Extricated
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#20
In terms of monetary value, alcohol consumption definitely does benefit the UK government, sad as it may be.
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