Iain Dale: "tax revenues for the Treasury to squander"

rwendland Mon Jul 09, 2007 at 05:09:00 PM GMT Print-friendly version Facebook

Iain Dale, Tory wonder-blogger, has let slip his general view on public spending: "extra tax revenues for the Treasury to squander". A relief in a way to see a solid heartfelt Tory view on public spending, rather than the warm-fuzzy Cameron spin.



To be fair, Iain Dale was foaming at his namesake's Iain Duncan Smith's "ludicrous proposal" to put up taxes on alcohol, so probably wasn't thinking about public spending in the round, or the current Tory line. Iain Duncan Smith has proposed that alcohol taxes be increased to fund an extra £400 million spend on the treatment of drug and alcohol problems - an idea worth thinking about. Implementing it might split the Tories on this!

Iain Dale 



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Iain Dale: "tax revenues for the Treasury to squander" | 2 comments (2 topical)

Re: Iain Dale (#1)

by NorthernMonkey on Tue Jul 10, 2007 at 11:28:00 PM GMT

Not sure I'd agree with a big tax increase on alcohol either - I don't see what good it would do. Anyone addicted to alcohol or who is a binge-drinker is not going to be put off by a rise in the price.


Re: Iain Dale (#2)

by rwendland on Wed Jul 11, 2007 at 11:59:18 AM GMT

The academic research I've glanced at does suggest alcohol consumption is responsive to price (price elastic), especially amongst youth, young adult, and heavy drinkers (generally less-affluent); so it might well still work. However in the EU the UK already has amongst the highest alcohol duties in the EU (along with Sweeden, Finland & Ireland), so along with you I doubt there is much sense in going higher. Excessive drinking does seem a northern EU culture thing.

To lift a quote from the 2nd paper:

There is ample evidence that at the population level, alcohol consumption is responsive to price...many studies have concluded that heavier drinkers are more responsive to price than non-heavy drinkers. Other studies indicate that there is an inter-relation between price and income, with young males on lower incomes being more susceptible to price elasticity than those on higher incomes. However there are still considerable gaps in the evidence...


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Iain Dale: "tax revenues for the Treasury to squander" | 2 comments (2 topical)