The Treasury could take a hit of nearly ￡60billion a year as younger people resolve to live clean. (Image: Getty)
The Treasury could take a hit of nearly ￡60billion a year as younger people stop drinking, smoking and driving polluting cars, a leading think-tank has warned.
Sin taxes are a major source of cash for the nation’s finances – but a clean-living revolution has put future tax revenues in doubt.
A combination of duties and VAT is predicted to give a multibillion-pound boost to the Chancellor’s coffers in the present financial year, with ￡29.2billion coming from fuel, ￡15.7billion from alcohol and ￡12.5billion from tobacco.
Powered By
00:00/00:31
10
10
This Morning: Cancer patient reveals she was cheated on
Share
Next
Stay
But the Prime Minister plans to phase out smoking by raising the smoking age every year, and the sale of new diesel and petrol cars will be illegal from 2035.
And more than a third of 18 to 24-year-olds do not drink alcohol, according to research carried out by YouGov.
Christopher Snowdon, of the Institute of Economic Affairs, warned taxpayers could be in for a shock when the Government has to find new sources of income.
He said: “Motorists, drinkers and smokers pay ￡57.4billion in tax every year. This huge sum is vital to the public finances.
“Legal tobacco sales will eventually dwindle to zero, thanks to Rishi Sunak’s prohibition, and the switch to electric vehicles will evaporate fuel duty.
“A crackdown on drinking would lose the Government billions more. Even -hiking VAT to 25 per cent would not make up the shortfall and yet the Government will have to find something to tax.”
Don't miss... Britains 100 biggest taxpayers put ￡5.35billion into Treasury
YouGov polling last month found that 39 per cent of 18 to 24-year-olds are tee-total, and 44 per cent have started drinking low or no-alcohol alternatives.
And Stuart Adam, of the Institute of Fiscal Studies, said that the challenge of recouping the “disappearing revenue from taxing petrol and diesel cars” is “one of the big questions the political parties ought to be talking about ahead of the election but aren’t”.
Maxwell Marlow, of the Adam Smith Institute, said a road tax would be a “more fair and efficient way of taxing vehicles” and would “involve taxing travel at peak times and areas of high congestion, -disincentivising wasted time and fuel”.
He warned that politicians risk putting a “huge dent in the national finances in the long term by introducing over-zealous bans and by subsidising electric vehicles.
“Coupled with Generation Z’s more health-conscious culture, Whitehall will have to look elsewhere to fill the gap.”
But lifestyle changes could result in long-term improvements in the health of the population and boost the economy.
David Finch, of the Health Foundation, said: “We are already seeing the fiscal consequences of worsening health with an increased cost of ￡16billion a year since the start of the pandemic due to worsening working age health. Key measures to improve health, whether reducing smoking, alcohol consumption and having cleaner air, can make a real difference.
“But, crucially, these measures can also improve the public finances – with higher tax revenues from boosted employment and lower sickness benefit claims.”
DON'T MISS
Powered by
Tory MP backs call by Brianna Ghey's mother to ban under 16s accessing social media
43 Comments
New favourite Kemi Badenoch to succeed Rishi Sunak
286 Comments
Healthy living among younger people could cost the Treasury ￡60b
19 Comments
Rail experts gather to plan new HS2 link
21 Comments
Newly appointed Michelle O'Neill vows to 'serve everyone equally'
55 Comments
‘Not you again!' Rishi Sunak wins over social media with hilarious Piers Morgan put-down
13 Comments
Britain 'spending ￡50bn' as top minister insists 'we'll have enough weapons' for WW3
320 Comments
Top Tory minister says Clapham alkali attack ‘is not really about asylum' despite outrage
128 Comments
Labour civil war brews over ￡28b pledge on green policies
250 Comments
Britain warned it could be too weak to fight WW3 amid public fears of conflict
803 Comments
Nigel Farage 'won't be getting heavily involved' in Reform UK general election campaign
232 Comments
'We are talking to MPs': Dispirited Tories ready to jump ship, says Reform UK recruiter
440 Comments
Remainers humiliated again as London capitalises on Brexit as world's top financial centre
3158 Comments
BBC Newsnight in chaos as Left-wing Tory slammed for hijacking Clapham acid attack debate
824 Comments
POLL: Should older drivers pay more for car insurance as fees rise by hundreds?
145 Comments
Experts demand urgent tax cut to ‘reduce the pressure' on struggling families
1 Comments
Hunt's stealth tax raid exposed - see what Chancellor is hiding from you as Budget looms
23 Comments
Motorists to face ‘unjustified' car insurance penalties after Martin Lewis warning
32 Comments
Tax-free state pension demands surge as Jeremy Hunt and DWP face fresh calls
135 Comments
James Whale kicks former union boss out of TalkTV studio for 'talking rubbish' about Hamas
498 Comments
Tory MP backs call by Brianna Ghey's mother to ban under 16s accessing social media
43 Comments
New favourite Kemi Badenoch to succeed Rishi Sunak
286 Comments
Healthy living among younger people could cost the Treasury ￡60b
19 Comments
Rail experts gather to plan new HS2 link
21 Comments
Newly appointed Michelle O'Neill vows to 'serve everyone equally'
55 Comments
‘Not you again!' Rishi Sunak wins over social media with hilarious Piers Morgan put-down
13 Comments
Britain 'spending ￡50bn' as top minister insists 'we'll have enough weapons' for WW3
320 Comments
Top Tory minister says Clapham alkali attack ‘is not really about asylum' despite outrage
128 Comments
Labour civil war brews over ￡28b pledge on green policies
250 Comments
Britain warned it could be too weak to fight WW3 amid public fears of conflict
803 Comments
Nigel Farage 'won't be getting heavily involved' in Reform UK general election campaign
232 Comments
'We are talking to MPs': Dispirited Tories ready to jump ship, says Reform UK recruiter
440 Comments
Remainers humiliated again as London capitalises on Brexit as world's top financial centre
3158 Comments
BBC Newsnight in chaos as Left-wing Tory slammed for hijacking Clapham acid attack debate
824 Comments
POLL: Should older drivers pay more for car insurance as fees rise by hundreds?
145 Comments
Experts demand urgent tax cut to ‘reduce the pressure' on struggling families
1 Comments
Hunt's stealth tax raid exposed - see what Chancellor is hiding from you as Budget looms
23 Comments
Motorists to face ‘unjustified' car insurance penalties after Martin Lewis warning
32 Comments
Tax-free state pension demands surge as Jeremy Hunt and DWP face fresh calls
135 Comments
James Whale kicks former union boss out of TalkTV studio for 'talking rubbish' about Hamas
498 Comments
Tory MP backs call by Brianna Ghey's mother to ban under 16s accessing social media
43 Comments
New favourite Kemi Badenoch to succeed Rishi Sunak
286 Comments
Healthy living among younger people could cost the Treasury ￡60b
19 Comments
Rail experts gather to plan new HS2 link
21 Comments
Newly appointed Michelle O'Neill vows to 'serve everyone equally'
55 Comments
‘Not you again!' Rishi Sunak wins over social media with hilarious Piers Morgan put-down
13 Comments
Britain 'spending ￡50bn' as top minister insists 'we'll have enough weapons' for WW3
320 Comments
A Treasury spokesman said: “Our decisive action to halve inflation and ensure debt falls as a share of the economy means we are now beginning to turn a corner.
“The best way to deliver sustainable funding for public services is to grow the economy. The UK has grown faster than France, Germany and Japan since 2010 and the Office for Budget Responsibility says our action in spring and autumn will deliver the largest boost on record.”
Become an Express Premium member Support fearless journalism Read The Daily Express online, advert free Get super-fast page loading
Start 30-day
FREE trial
Related articles Time running out to escape forgotten tax that’s twice as bad as inheritance tax Hunt urged to scrap 'critical' tax that hits thousands of vulnerable Brits Inheritance tax 'on track to break all previous records' as HMRC rakes in 5.7bn Emily Thornberry slammed for backing NatWest's anti-free speech debanking policy Civil servants let slip Labour's plan for tax rises and open borders