Jersey to raise alcohol tax by 4.5%

Ministers had initially suggested a rise of 8.9%

Alcohol duty will go up by 4.5% next year, following a decision in Jersey's States Assembly.

Ministers had initially suggested a rise of 8.9%, but revised down their proposals in response to pressure from backbenchers and businesses.

The vote leaves a £1m shortfall in the 2024 budget, which will be funded from government reserves.

The decision also commits the government to a broader review of alcohol policy in 2024.

Hospitality firms' fears

Twenty-seven members voted to increase alcohol duty by 4.5%, while 19 voted against the suggestion and one abstained.

The government said that its revised proposal was "a compromise that balances the support for the industry through reduced alcohol duties, with the health consequences of alcohol consumption".

Speaking during the debate in the States Assembly, Health Minister Karen Wilson said: "Freezing alcohol duty will not assist in addressing harms related to alcohol consumption, and places greater pressure on an already stretched health system to deal with such harm."

Alcohol duty was frozen by politicians in 2021 and 2023, and increased by 1% below inflation in 2022.

The Jersey Hospitality Association claimed duty rises merely encouraged people to drink at home, rather than a pub.

And it warned that some businesses might not survive.

States members also agreed that the government should "publish a broader review of alcohol policy and consider what additional support could be provided for the hospitality sector and the Island’s small spirits producers".