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The Jersey Hospitality Association is urging States Members to throw out a proposal in the Government’s draft spending plans for next year to increase alcohol duty by almost 10%.
The recently published Government Plan – which sets out firm public spending for next year and indicative spending for the following three – proposes increasing duty on beer, wine and spirits by 8.9%, which it stresses is below the current RPI of 10.9%.
The price of an average glass of wine will go up by 4p and a one-litre bottle of vodka by £1.45 on 1 January, if States Members back the Government Plan 2024-2027 when it is debated in December.
But the Jersey Hospitality Association (JHA) believes alcohol should be zero-rated. It has called the proposed rise “tired legacy thinking that will unfairly hit ordinary businesses and islanders”, estimating that it will add up to 50p to the cost of a pint.
Marcus Calvani, Co-CEO of the JHA, said: “Far from acknowledging that people are facing a cost-of-living crisis, the Council of Ministers is once again targeting the usual suspects and rattling the same old tins with its tired legacy thinking.
Pictured: JHA co-CEO Marcus Calvani said that "Scrooge has come early this year".
“Rather than tackling the high rates of alcohol consumption it refers to through education and cultural change, the excise increases will stop people drinking in the safe and controlled environment of hospitality venues, forcing them to shop in off-licences and duty free.
“With more people buying from duty free, only the transport retail operators benefit and money that would circulate in the local economy will be lost.”
He added: “Reading the Government Plan is like looking through the Government’s budget greatest hits – the hits taken by the public. Ideas that have sat at the back of the draw have been dusted off, and it’s time they wrote some new material.
“Two years ago, a Scrutiny Panel lead by Deputy Kristina Moore defeated the Council of Ministers by arguing for a lower increase in duty. Now that she is Chief Minister, it is disappointing that she and her colleagues are turning their backs on hospitality.”
Pictured: "Now that she is Chief Minister, it is disappointing that she and her colleagues are turning their backs on hospitality."
Mr Calvani praised the efforts of Economic Development Minister Kirsten Morel but added that his efforts were being thwarted by political colleagues.
“We have an industry champion in Deputy Morel,” he said, “who clearly not only listens to our businesses but acts with intention to stimulate and grow a balanced economy through multiple industries.
“However, it seems that whatever he gives and whatever his priorities are, they are squashed and cast aside by a total lack of joined-up thinking and direction from his ministerial counterparts. Bold decisions and change are needed for our Island, but it’s clear that few are willing to put their name behind what needs to be done.
“The JHA can only conclude that Scrooge has come early this year and that he’s brought the fun police with him as the Government is not serious when it claims it is helping hospitality businesses.”
Mr Calvani also voiced his objection to proposals included in the Government Plan to introduce a liquid waste levy, a ‘user-pays’ charge first mooted by a previous Government, but dropped, in 2017.
Total duty, including fuel and tobacco, is forecast to provide £73m to the Exchequer in 2024, which would be enough to fund the States of Jersey Police (£27m), Environment Department (£10m) and Economic Development Department (£35m) next year.
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