Cameron’s alcohol tax will hit students but not the root of the problem

Back in term one we brought you our definitive guide to drinking on a budget, noting the price per unit for a range of different drinks. With David Cameron this week hinting at a minimum price per unit, likely to be around 50p, we revisit our previous analysis to assess how this tax would affect the student’s drinking budget.

In truth, it does not look good. Breaking it down we have found the following:

1. Country Manor, the cheapest drink in our previous survey coming in at £5.99, would now cost at least £11.25 – that is an increase of 88 percent, an inflation rate that only Zimbabwe would be proud of.

2. Spirits would face a similar price rise. 700ml of any spirit would cost a minimum of £14. Given that Tesco value vodka is currently under £9, this would certainly not go down well.

3. Wine would also increase in price, just not by as much. The minimum price for a 13 percent bottle of wine would now be around £4.90.

4. The standard price for beer would not increase. The cheapest full-price beer in our survey was Carling, coming in at over 50p per unit. Whilst this is somewhat comforting, it would mean the end of great deals on cases of beer since we only took RRP prices into consideration.

Whilst increased drinks prices are undoubtedly a good reason to complain at Cameron’s latest hint, there are broader reasons to rally against this idea.

First, it would undoubtedly be a regressive tax – that is, it would hit those on lower incomes harder. This is because they spend a larger proportion of their income on alcohol when compared to those in the upper income brackets, simply because they have less disposable income to start with.

Second, it is not very likely that this plan will reduce the binge drinking culture that Cameron hopes to address. It is unlikely that people across the country will change their habits, no longer getting drunk at the weekend simply because it will cost them £5 or £10 more.

Whilst the money raised could go towards funding the £1bn – £2.7bn yearly cost to the NHS from excessive drinking, it seems unlikely that it would get to the root of the problem; the costs won’t just disappear.

Instead of focusing on the causes of the problem such as poor education and the prevalence of alcohol marketing, which promotes excessive drinking as well as trying to solve the worst problems, such as providing help to those dependant on alcohol, it appears as though Cameron has yet again shown a preference for a blunt tool, which is likely to do more harm than good.

Fortunately, it seems unlikely that the minimum price will be introduced as there are legal issues surrounding such a move. This is good news for students hoping to buy a bottle of vodka for under a tenner, and, on a more serious note may sway Cameron away from his blunt policies towards a more all-encompassing solution to what is undoubtedly a huge social problem.