Alistair Darling’s tax hike on cider of 10 per cent above inflation will bring in £15 million but this (excuse the pun) is small beer. The cost to the West Country could be much higher. Cider consumption has grown by over a third in the past decade and this boom may well have caught Alistair Darling’s eye.

Cider’s resurgence and its previously forgiving tax rate encouraged a massive reinvestment in the UK cider industry. Henry Chevallier of the National Association of Cider Makers points out that: “Cider makers have invested millions to plant thousands of acres of orchards in the last decade… When Gordon Brown then Alistair Darling left us alone out investment doubled the value of the cider market.” Alistair Darling now risks damaging not only the cider makers and their employees but also the wider rural economy and the tourism industry.

If the economic case is spurious, the health argument is worse. Drinkaware praised the tax rise but admitted that “increasing the duty on alcohol won’t necessarily tackle alcohol misuse and change drinking behaviour.” Besides, according to the tabloids, it’s not cider but alcopops that are most responsible for binge drinking and antisocial behaviour. A recent survey reveals that alcopops are by some way the most promoted alcohol in supermarkets: 46 per cent of them were on special offer last year compared to only 20 per cent of ciders. Alcopops, however, were not mentioned by the Chancellor: duty on them will only increase (with other alcohols) “by 2 per cent above inflation… from 2013.” Meanwhile, this Government has failed to solve the issue of cut-price alcohol promotions and ‘happy hours’. 

Most alcopops, of course, are made by the multinational drinks companies. Smirnoff Ice, the biggest selling alcopop, is made by Diageo, a company that caused outrage in 2009 by closing historic distilleries in Labour seats (Glasgow North East, then represented by Michael Martin and Kilmarnock & Loudoun, represented by Des Browne). However angry Labour may have been with Diageo, targeting alcopops might cause Diageo to rethink its broader UK strategy with dangerous consequences for the Scottish Labour vote.

Whatever the financial or health considerations behind Alistair Darling’s cider attack, would it be too cynical to point out that the majority of cider makers are based in the Lib Dem’s South West stronghold?  And that for this reason Darling really has nothing to lose.

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