SNP Government urged to introduce supermarket 'booze tax' by top health charity

Calls are growing to hit shops and supermarkets with extra tax over the damage caused by alcohol and tobacco.

A top health charity has urged John Swinney to slap a booze tax on shops and supermarkets in his upcoming Budget. Alison Douglas of Alcohol Focus Scotland said higher business rates could raise nearly £60m to fund treatment services.

The minority SNP Government will publish its draft budget in December, but it is unclear if any opposition party will help get their tax and spend plans over the line.

The Greens are the most likely Budget partner and have demanded the introduction of a suite of extra taxes. One of their asks is for the Government to reintroduce higher taxes on outlets that sell alcohol and tobacco.

Nicola Sturgeon’s administration raised cash this way and the Greens want the plan resurrected. Douglas, whose group urges action against alcohol harm, backs the idea.

The chief executive told the Record: "Alcohol Focus Scotland is calling for a levy on shops and supermarkets that sell alcohol with the money raised going towards mitigating the health and social costs caused by the products they sell.

“Alcohol harm in Scotland is a public health emergency, with alcohol-specific deaths reaching a 15 year high. We all pay the price for this with the social costs of alcohol estimated at up to £10 billion every year in Scotland.”

AFS supports minimum unit pricing but Douglas said supermarkets benefit from this policy: “The pandemic has added to existing problems, damaging more people’s lives and placing additional pressure on our health and social care services.

"Yet the retailers who profit from the sale of these health-harming products are likely to have increased their profits since the introduction of minimum unit pricing. It is estimated that the additional revenue is over £30 million per year and this is estimated to rise by £16.5 million a year, following last week’s increase of MUP to 65p per unit.”

She said: “We have a tried and tested model of a levy on non-domestic rates. If applied to shops and supermarkets selling alcohol this could raise £57 million, according to the Fraser of Allander Institute, the vast majority of which would come from large supermarket chains. We would like to see this money used for local prevention, treatment, and recovery support.”

Scottish Government stats show 1,277 people in Scotland died from conditions caused by alcohol in 2023.

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Green MSP Gillian Mackay said: “Minimum unit pricing has been an important step forward, but the money made from it is staying with the supermarkets rather than being used to support people and families who are on the frontline of the crisis. If retailers are profiting from the sale of products that are damaging public health, like alcohol and tobacco, then they should also pay towards mitigating the health and social costs that they cause.

“This is something that I hope MSPs from all parties can agree on and work together to deliver. With a budget due later this year, I hope that the Scottish Government will apply a public health levy to ensure that we are supporting frontline recovery services.”

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