Estimating revenues from a proposed levy on non-domestic rates for alcohol retailers in Scotland

This paper estimates a range of revenues that might be raised by a levy on non-domestic rates for businesses which sell alcohol exclusively for consumption off-premises in Scotland, based on parameters proposed by Alcohol Focus Scotland.

Examining approximately 2,700 premises with exclusively off-premises licences in Scotland, we find that a 13p per pound of rateable value  – the same rate as the Public Health Supplement in 2013/14 and 2014/15 – would be expected to raise around £57 million per year. We also estimate that changing the levy rate by 1p would change revenues by £4.4 million per year, resulting in revenues of £44 million per year for a 10p levy and £70 million per year at a 16p levy.


João is Deputy Director and Senior Knowledge Exchange Fellow at the Fraser of Allander Institute. Previously, he was a Senior Fiscal Analyst at the Office for Budget Responsibility, where he led on analysis of long-term sustainability of the UK's public finances and on the effect of economic developments and fiscal policy on the UK's medium-term outlook.

Allison is an Associate Economist at the Fraser of Allander Institute. She specialises in socioeconomic inequality and labour market dynamics.