ACS

Commentators have speculated that the Budget will include further increases in alcohol duty today, with one newspaper suggesting that the Chancellor will impose a second 5% duty rise when he delivers the emergency budget on the 22nd June.

ACS (the Association of Convenience Stores) set out its major concerns that more duty increases will fuel the illegal trade in its submission to the Budget in May 2010. The illegal trade in alcohol and cigarettes account for more than £5 billion in lost revenue to the Treasury and legitimate businesses.

ACS Chief Executive James Lowman commented: “The pressure of Government to raise revenue is significant but a second alcohol duty hike in the same calendar year is not the answer. Every penny that prices increase pushes more consumers over to buying their products from illegal sources and so is likely to be counter-productive and damaging to legitimate licensed businesses.

“Duty increases are often seen as a politically justifiable option for a Chancellor seeking opportunities to increase revenue. However such a move at this time would pre-empt and undermine the credibility of the Coalition Government’s commitment to a detailed look at the evidence surrounding alcohol price and taxation.”

“ACS is happy to play a constructive role in such a review, and to understand more clearly how restrictions or interventions will have a measurable impact on alcohol harm.”

Contacts:

Shane Brennan, Public Affairs Director
01252 533009 / 07921 372978
Chris Noice, Communications Assistant
01252 533013

Notes to Editors:
1. ACS (Association of Convenience Stores) is the voice of local shops, representing over 33,500 convenience stores. ACS helps local shops thrive through lobbying, support and networking opportunities.
2. The speculation on alcohol duty rise in the Telegraph can be found here: http://www.telegraph.co.uk/foodanddrink/foodanddrinknews/7823523/Drinkers-face-double-whammy-price-hike-in-Budget.html