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Scottish Government Ministers have called for the revenue from tax on alcohol to be devolved to Scotland, as a final piece in the jigsaw of additions to the Scotland Bill.

A Scottish Government paper published yesterday sets out the case for devolving the revenue from excise duty to Scotland.

Revenue from excise duty for alcohol would enhance the financial responsibility of the Scottish Parliament and provide a stable tax base to help mitigate the flawed income tax proposals contained within the current Scotland Bill.

The paper highlights that as Scotland already meets the public spending costs associated with alcohol consumption, it should also receive control over the revenue benefit. It is estimated that every year alcohol costs the Scottish economy around £3.56 billion, including £270 million spent on healthcare, £230 million on social care and £730 million on crime.

The paper argues that 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. This would allow the Scottish Government to allocate additional funding to help tackle the negative consequences of alcohol consumption in Scotland, which could take the form of educational initiatives or other forms of preventative spending.

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 by excess alcohol consumption, and the health and social care that 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 contained in the Scotland Bill."

Estimated alcohol duties raised in Scotland compared with per capita amount received from UK Government, 2005-2010.

Scottish Alcohol Duties

2005-06 £725 million

2006-07 £724 million

2007-08 £749 million

2008-09, £752 million

2009-10 £816 million

Per Capita share of UK Alcohol Duties

2005-06 £669 million

2006-07 £665 million

2007-08 £690 million

2008-09 £722 million

2009-10 £777 million

Since the election, the Scottish Government has called for the following additions to the Scotland bill:

• greater borrowing powers
• greater devolution of broadcasting
• devolution of corporation tax
• devolution of the administration and revenues of the Crown Estate
• devolution of excise duties
• stronger voice in Europe

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