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Harm caused by alcohol costs £27.4bn a year in England – figures

The Institute of Alcohol Studies charity said its data suggests a more than 40% increase in the cost of harm since 2003.

Jane Kirby
Saturday 18 May 2024 07:56 BST
The tax revenue from alcohol raises around £12.5 billion each year, data suggests (PA)
The tax revenue from alcohol raises around £12.5 billion each year, data suggests (PA) (PA Archive)

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The harm caused by alcohol costs £27.4 billion a year in England, according to new estimates.

The charity the Institute of Alcohol Studies (IAS) said its data shows there has been more than a 40% increase in the cost of harm since 2003.

Furthermore, the tax revenue from alcohol raises around £12.5 billion each year, “meaning it is dwarfed by the financial cost of harm”, it said.

The cost of alcohol harm to the NHS is £4.9 billion, which the IAS said is enough to pay for the salaries of almost half the nurses in England.

Dr Katherine Severi, chief executive of the IAS, said: “Year after year, we have seen steady increases in alcohol consumption, and deaths are at a record high.

“Now we have data to show that the financial cost of harm has risen too.

“As a country we cannot afford to sit back and do nothing. The Government should develop a comprehensive alcohol strategy to tackle this rising harm, which would have a knock-on effect of reducing the financial burden too.”

The figures from IAS suggest alcohol harm costs £14.58 billion linked to crime and disorder, plus £5.06 billion in wider economy costs due to things such as people missing work or being less productive at work.

Its calculations suggest the region with the highest cost per head of alcohol harm is the North East, with every person contributing £562 a year.

A truly responsible government would understand that tackling alcohol harm should hold primacy over the industry making money for its shareholders

Professor Sir Ian Gilmore, Alcohol Health Alliance

Susan Taylor, head of alcohol policy at the regional alcohol office Balance, said: “The North East suffers the worst alcohol harms in the country – and this impact is rising year on year for our people, our streets, our health and our economy.

“We need real action urgently to tackle this alcohol crisis and ensure that the prosperity of our region isn’t further compromised in the future.”

Chairman of the Alcohol Health Alliance, Professor Sir Ian Gilmore, said: “Doctors, nurses and other healthcare professionals spend so much of their time treating alcohol-related harms, all of which are preventable.”

He said “so much of the UK’s policymaking is in thrall to Big Alcohol, which overplays its economic contribution while underplaying the massive cost of harm.

“A truly responsible government would understand that tackling alcohol harm should hold primacy over the industry making money for its shareholders”.

Turning Point chief executive Julie Bass said: “Too many people have lost their lives because of alcohol-related dangers.

“Deaths from drinking are at record levels, yet each tragedy is preventable if people at risk are identified early and given appropriate support.”

Matt Lambert, chief executive of the Portman Group, which represents the alcohol industry, said the figures failed to take into account the “significant direct economic contribution” of the alcohol industry to the UK, which he said the IAS itself had estimated as £46 billion per year in 2017.

“While they haven’t updated this figure since, it’s likely to have grown even further and still does not incorporate the wider economic and social benefits of moderate and responsible alcohol consumption in UK society,” he said.

“We fully recognise the impact that alcohol misuse has on health, social and police services, which is why the industry remains committed to promoting moderate drinking and supporting partnerships which tackle harm at a local level, including anti-social behaviour and underage drinking.

“It is also important to remember that an increasing majority in the UK drink responsibly, and harms such as binge-drinking, alcohol-related crime, and drink driving have fallen significantly over the last decade.”

A Department of Health and Social Care spokeswoman said: “Through our 10-year drug strategy, supported by £532 million, we are helping up to 54,500 more people receive alcohol and drug support, and we are also funding specialist alcohol care teams in hospitals in England with the highest rates of alcohol harm and socioeconomic deprivation.

“Last August, the Government also introduced reforms to alcohol duty – meaning products are taxed directly in proportion to their alcohol content, and we are reviewing the official cost of alcohol harm estimates to support us in our efforts to address the harms associated with alcohol.”

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