Ministers' plan to increase alcohol duty halved in response to hospitality concerns

The NHS recommends adults consume no more than 14 units of alcohol per week - equivalent of six pints of beer or six large glasses of wine
Plans to increase Jersey's alcohol duty by 8.9% from 2024 have been scaled back - with a 4.5% rise proposed instead. Credit: ITV News

Jersey's Council of Ministers have suggested halving the planned increase in alcohol duty.

An 8.9% rise from January 2024 had been proposed as part of the Government Plan.

However, a scrutiny panel raised concerns from the hospitality industry that the move would force bars, pubs and restaurants to hike prices to remain economically viable.

The Institute of Directors told the Economic and International Affairs Scrutiny Panel: "The plan infers that duties on alcohol and fuel serve to address the health of islanders and address environmental issues. Whilst we recognise these are understandable reasons, there has been little collaboration with the industry to assess the impact on business.

"The impact on business of these duties will be to increase prices. This, in turn, will impact the quality of life of islanders which appeared to be the main driver of the Government Plan."

Ministers are now suggesting a 4.5% rise as a compromise, saying they "recognise the challenges faced by the hospitality sector".

The new alcohol and fuel duty rates will be debated next week as part of the Government Plan debate, which starts on Monday 11 December.

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