A Reality Check on Our Red-Carded Consumption
The latest word from RIFT is a bit of a sobering (though oddly funny) reminder that our love affair with cigarettes and booze might be cooling down, at least when it comes to the taxman’s wallet.
What the Numbers Say
- £10 bn went into the coffers from tobacco duties in 2022/23 – a huge sum, but a –2.7% drop year‑on‑year. It’s the third‑worst decline in the last 20 years.
- £12.4 bn came in from alcohol duties – the highest since 2019/20 and a –5.1% plunge, the steepest one‑year slide seen in two decades.
- Combined, that’s £22.4 bn of tax revenue – 4% lower than the year before, the biggest single‑year drop in 20 years. It’s only been four times in two decades that this combined figure has gone down.
Who’s Leading the Tale?
Back in 2003/04, half of the combined revenue came from tobacco. Fast forward to today – alcohol now makes up the majority, sitting at 55%.
Health Costs versus Revenue
- Smoking pushes the NHS down a £3.4 bn yearly hit.
- Alcohol-related problems cost an extra £4.1 bn each year.
- In total, the NHS bears about £7.5 bn a year, which is roughly a third of the 2022/23 duty receipts.
Bridging the Gap: The RIFT Take
Bradley Post, MD of RIFT, summed it up: “We’re all trying to kick those vices at the start of the year, and it’s great that tax revenue is dropping the fastest in 20 years. That means fewer users, less strain on our NHS, and a win for our wallets – though the revenue itself is still the second‑highest in two decades.”
He also warned – if vaping catches on big time, duties might follow soon. That could shift the numbers dramatically, and we’ll have to keep an eye on how that plays out for the NHS.
Bottom Line
Smokers and drinkers, it appears you’re gradually wavering from your habits. Meanwhile, the NHS is still bearing the cost – but that cost is now a little less than the tax poundage each year. It’s a win‑win, but with a reminder: every cigarette and paired glass brings an extra £100 of hospital bills into the mix.
