Why fears over ‘workplace productivity’ could see cost of a pint rise
A leading think tank has called for increased taxes on alcoholic drinks to combat a “productivity crisis” caused by an entrenched culture of drinking in the workplace.
The Institute for Public Policy Research (IPPR) found that nearly one in three employees called in sick after drinking at work last year.
That figure rose to 43 percent for those ages 18 to 24; More than a third of young people felt pressure to drink to “fit in” or advance their careers.
The IPPR survey also found that more than one in five employees are working with a hangover, and 29 per cent have noticed colleagues looking “tired or sluggish” due to alcohol.
Ahead of Rachel Reeves’ autumn budget next month, the think tank has highlighted the vital need for action to tackle the damaging impact of work-related drinking on productivity.
They called on the government to reintroduce the alcohol tax escalator. This mechanism, established by Labor in 2008 and scrapped by the Conservatives in 2014, increased all alcohol duty rates by 2 per cent annually above inflation.
IPPR also said the government should take action on “the cheapest, strongest drinks that cause the most harm” by standardizing tax rates on all alcohol products with the same alcohol level by volume.
The report stated that the minimum unit price for all alcohol imposed in Scotland and Wales could also be set in England.
The government increased alcohol duty rates in February, which had been frozen by the Conservatives for the previous two years.
Health bodies have called for a new national alcohol strategy to limit the harm, the last of which was published in 2012, but the IPPR said the impact of employees routinely drinking alcohol was undermining productivity and stifling growth.
IPPR senior research officer Jamie O’Halloran said urgent action was needed.
He said: “We often think of alcohol harm as a public health problem, but this research shows it is a national economic problem.
“With nearly half of young professionals reporting sick after drinking at work, it’s not just a hangover, it’s a productivity crisis.
“If the government is serious about growth, it needs to take the harm of alcohol seriously.”
The report found that most employers were seen as doing little to address the culture of drinking in the workplace.
More than half of workers surveyed said their employers did not offer any guidance, training or inclusive alternatives to activities involving alcohol.
But 73 per cent of employees said they believed employers had a responsibility to reduce the harms of alcohol, indicating a “clear gap between expectation and action”.
Sebastian Rees, IPPR’s head of healthcare, called on employers to take action on the issue.
He said: “Employers have a great opportunity here.
“By moving away from alcohol-centric cultures and offering real support, they can improve wellbeing, improve performance and create more inclusive workplaces.
“This isn’t about banning booze; it’s about giving people the option to thrive without pressure. The evidence is clear: doing nothing costs us all.”
The report acknowledged that increasing the cost of alcohol products may not be welcomed by the public and may pose a political risk.
He added that “constant” lobbying of policymakers by the alcohol industry had focused on the sector’s huge contribution to the economy, put at tens of billions of pounds a year, and the jobs supported by the sector.
But IPPR said this contribution could be exaggerated because many of these jobs were often part-time and “low-paid”.
The report’s findings were based on a survey of 2,083 employees across the UK.
A Government spokesman said: “As part of our 10 Year Health Plan, we are supporting people to make healthier choices by shifting to disease prevention, while building an NHS fit for the future.
“This includes introducing a mandatory requirement for alcoholic beverages to display consistent nutritional information and health warning messages.
“The government has also provided a further £310 million to improve drug and alcohol treatment services and provide wider recovery support, including housing and employment assistance.”
