Reeves urged to raise alcohol duty to improve UK productivity.

 

Keir Starmer's Labour government is being urged by the think tank, The Institute for Public Policy Research (IPPR), which has close ties to the Labour government, to raise alcohol duty to improve UK productivity.

Britain has experienced decades of low productivity but it's not because people drink too much beer. A lack of capital investment and investment in skills, are two reasons why Britain experiences low productivity. Another reason, is low wages. When wages are low, employers are less likely to invest in labour saving machinery, that can improve productivity. 

British pubs are already closing their doors at a colossal rate. Pubs are closing because of the burden of higher taxes, N.I., regulation and overall higher costs. Labour claims that it wants to grow the British economy but it doesn't seem to have much of a clue about how you go about this. The hospitality industry is one of the biggest employers in the UK and imposing higher costs on the industry, is going to close more businesses and lead to more unemployment.