Tax On Alcohol To Rise By 4.5%

States Members have voted for a 4.5% rise in alcohol duty for 2024.

Members were split, with some supporting the government's original planned increase of 8.9%, which would mean an extra 4p on a pint of beer.

Others agreed with the scrutiny panel's idea of freezing alcohol duty for 12 months to support the struggling hospitality industry.

The sector has voiced concerns about its future in Jersey.

However, the States Assembly has agreed to the 'compromise' amendment from the Council of Ministers, by voting for a 4.5% increase.

Ministers said it would  'recognises the challenges' faced by hospitality, while also balancing the 'health consequences' of alcohol consumption.

Health Minister Deputy Karen Wilson defended duty rises, speaking of the harm alcohol does: 

"One in five adults drink in excess in Jersey. 33% of people report binge drinking at a frequency of monthly. The rate of harmful drinking is higher in men, with one in three men and one in six women.  Heavier drinkers have higher rates of sickness leave and are more likely to be unemployed, resulting in a loss of economic activity."

Environment Minister Deputy Jonathan Renouf gave this anecdote to illustrate coping with increased prices:

"One day I noticed that my lunch costs at work had considerably risen and it was more than £5 every day.

I did some sums and found out that it was £25 a week or £1,000 a year. Perhaps I could find better uses for that £1,000.

So I started making my own sandwiches. Now, not everybody responds in that way, but some people do, and that's the effects of price rises."

Deputy Rob Ward wasn't sure what point Deputy Renouf was making:

" I will note that what the Minister didn't do is give up eating sandwiches, he just made his own.

I don't know if the suggestion is to make your own alcohol? We've all tried it.  When I was a student we brewed some alcohol. It was called 'Wizard Killer'.  It was totally unpalatable."

St Saviour's Constable, Kevin Lewis, who is teetotal and was in favour of a duty freeze, asked the assembly if alcohol is the problem or a symptom of a deeper issue.

"The overwhelming majority of people work very hard and they'd like to go out at night and have a drink. I don't have a problem with that - good luck to them, cheers, good health to you!

And as has been said, we've had a discotecque close down recently and there's possibly more to come, and I don't think this would necessarily cure the problem."

Politicians voted 27-19 to support the 4.5% rise, and a resulted reduction of £1.3m in revenue. They also agreed 43-2 to review how future duty rises might be applied differently to the drinks trade in future.

Former Economic Development Minister Deputy Lyndon Farnham warned the decision would lead to the loss of more local businesses.

"We will unfortunately see more hospitality businesses closing in the months ahead.

As a result of this decision, more businesses will fail."

The debate continues on the 2024 budget and government spending priorities for the next three years.  

Ahead of this week's discussions, Ministers had conceded on fuel duty and agreed to scrap a planned 10.9% increase for 2024.