While Scotland has a well-established reputation as a producer of whisky, a report today reveals that as a nation we are much more likely to drink wine, beer and vodka.
The research from the Social Market Foundation think tank report shows that the alcohol industry costs the economy – in terms of impact on public services, productivity and the value of lives lost to alcohol – roughly the same amount as it generates for the economy. Key findings include:
- 4.9% of the Scottish economy (£8.1bn) can be attributed to the sale of alcohol, around 60% of which comes from whisky exports
- 99% of whisky produced in Scotland is exported
- Alcohol’s share of employment (2.4%) is half its share of GDP because whisky production is not labour intensive
- Around half of the 60,000 Scottish jobs related to alcohol are in pubs, bars and restaurants – these are some of the lowest paying jobs in the economy
- The societal costs of alcohol go far beyond the £1.2bn estimated economic cost – including the £ value put on lost life, the costs are comparable to alcohol’s contribution to GDP – amounting to between £5-10bn
- Scots drink considerably more wine, beer and vodka than we do whisky
The report, sponsored by Scottish Health Action on Alcohol Problems (SHAAP) and which draws on a wide range of data sources, concludes that the economic costs of reducing alcohol sales in Scotland can be largely offset by gains to other sectors and by having a healthier, more productive population.
Commenting on the findings, Dr Alastair MacGilchrist, Chair of SHAAP, said:
“The Scottish Government’s proposals to restrict marketing such as alcohol sponsorship of sports have led to a heated debate with the alcohol industry making a number of outlandish claims about the negative impact such restrictions would have on the economy. This serves as a distraction from the very real costs to our economy – and more importantly to people in Scotland – resulting from the consumption of alcohol in Scotland. Every day three people die directly because of alcohol. Nearly one in four of us drink at hazardous or harmful levels, impacting our physical and mental health, relationships and ability to fulfil our potential. These are human costs that the alcohol industry chooses to ignore whilst focusing on their annual profits instead.
“We have heard all this scaremongering before when minimum unit pricing was first suggested but today’s report shows that instead of damaging the alcohol industry, after it was implemented the industry continued to grow – while our consumption fell, thus reducing the harms caused by alcohol.
“While it’s important that the Scottish Government listens to everyone’s views on its plans to restrict marketing, I do hope it follows the evidence and puts the people of Scotland ahead of the profits of big alcohol companies.”
Aveek Bhattacharya, Research Director of the Social Market Foundation, who conducted the research said:
“When we think about the alcohol industry in Scotland, our minds are naturally drawn to scotch whisky producers, which do indeed produce around half the economic value that comes from alcohol. Yet the Scottish Government’s alcohol policy is of barely any relevance to the whisky industry, given that 99% of all scotch is sold outside Scotland.
“Policies to reduce alcohol consumption in Scotland will have more effect on supermarkets, off-licences, as well as hospitality. These sectors have shown substantial adaptability in the past, for example shifting their offer towards food. But some of them may be left behind if the Government continues to have success in curbing harmful drinking. The important thing to remember, though, is that if consumers don’t buy alcohol they will shift their spending to other goods and services, and so revenue and jobs in other sectors will at least partly offset the hit to alcohol retailers and producers.
“Moreover, a workforce that drinks less, and so misses less time off sick, has a lower risk of unemployment and indeed premature death, will only be a good thing for the economy.”