Costs of alcohol already devolved, so give us tax powers, urges Ewing

THE SNP government has pressed the case for gaining control of alcohol tax revenue in the last of six demands sent to Westminster.

A paper set out more details of the proposal, arguing that because Scotland already meets the costs associated with alcohol consumption, it should also receive control of the revenue benefit. It claims it would bring in millions of pounds more each year to Scotland’s coffers.

The Scottish Government estimates that every year alcohol costs the economy about £3.56 billion, including £270 million on healthcare, £230m on social care and £720m in crime.

The paper suggests the Scottish Budget should be reduced by a per capita share of UK-wide alcohol duties, with the amount of duty actually collected in Scotland added to the budget.

The Scottish Government said the per capita share of UK alcohol duties was £777m in 2009-10, compared with £816m in Scottish alcohol duty.

Enterprise minister Fergus Ewing said: “Devolving excise duty will help address the shortcomings of the income tax proposals and complete the jigsaw of reforms we want added to the Scotland Bill. The costs of excess alcohol consumption in Scotland are already devolved – we already pay for the crime caused, and the health and social care people who drink too much need.

“It is only logical that, as we are already meeting the costs of alcohol, we should have control over the revenue benefits it brings.

“Duties paid in Scotland should stay in Scotland. This would not only give the Scottish Parliament greater financial responsibility but would also provide the Scottish Government with a stable tax base to help mitigate the flawed income tax proposals in the Scotland Bill.”

First Minister Alex Salmond set out six demands after winning the May election. He wants devolution of corporation tax and the Crown Estate, more borrowing powers, a greater share of excise duty, a role at Europe’s Council of Ministers and limited control of broadcasting.