The Effect of the United Kingdom Smoking Ban on Alcohol Spending: Evidence from the Living Costs and Food Survey
- The UK smoking ban led to a decrease in alcohol expenditure.
- The decrease was especially pronounced in the on-trade (pubs and restaurants) and for smoking-households.
- The reduction in on-premise spending was roughly £1.70 per smoking-household, which is a reduction of approximately 15–20%.
The effect of smoking bans on alcohol consumption is unclear, and this is especially true of the differing effect on smokers and non-smokers. This paper uses spending survey data to examine the effect of the United Kingdom smoking bans on alcohol spending.
It finds the introduction of a smoking ban decreased alcohol expenditure, specifically in the on-trade (pubs and restaurants) and amongst smoking households. Smoking households are estimated to have reduced their weekly on-premise alcohol expenditure by £1.70 (approximately 15–20%), whilst non-smoking households do not significantly change their expenditure. The smoking ban may therefore have affected on-premise outlets through a reduction in revenue.
This study provides further evidence that tobacco policies affect alcohol use behaviour.