A leading think tank has called for increased taxes on alcoholic beverages to combat a “productivity crisis” driven by an entrenched workplace drinking culture.
The Institute for Public Policy Research (IPPR) found nearly one in three workers admitted calling in sick after drinking at work events in the past year.
This figure surged to 43 per cent for 18 to 24-year-olds, with over a third of young people feeling pressured to drink to “fit in” or advance their careers.
The IPPR survey also revealed more than one in five employees worked with a hangover, and 29 per cent noticed colleagues appearing “tired or sluggish” due to alcohol.
Ahead of Rachel Reeves’ autumn Budget next month, the think tank stressed the vital need for action against the damaging impact of work-related drinking on productivity.
They urged the Government to reintroduce the alcohol duty escalator. This mechanism, established by Labour in 2008 and scrapped by the Conservatives in 2014, increased all alcohol duty rates by 2 per cent above inflation annually.
IPPR also said the government should take action on the “cheapest, strongest drinks which cause the most harm” by standardising duty rates across all alcohol products with the same level of alcohol by volume.
A minimum unit price on all alcohol, which has been implemented in Scotland and Wales, could also be set in England, the report said.
The Government increased alcohol duty rates in February after they were frozen in the previous two years by the Conservatives.
Health organisations have called for a new national alcohol strategy to limit harm, with the last one published in 2012, but IPPR said the impact of workers routinely drinking alcohol is undermining productivity and stifling growth.
Jamie O’Halloran, senior research fellow at IPPR, said urgent measures are needed.
He said: “We often think of alcohol harm as a public health issue, but this research shows it’s a national economic problem.
“When nearly half of young professionals are calling in sick after workplace drinking, it’s not just a hangover, it’s a productivity crisis.
“If the Government is serious about growth, it needs to take alcohol harm seriously too.”
The report found that most employers are seen as doing too little to address a workplace drinking culture.
More than half of workers surveyed said their employer had not provided any guidance, training, or inclusive alternatives to events featuring alcohol.
But 73% of workers said they believe employers have a responsibility to reduce alcohol harm, representing “a clear gap between expectation and action”.
Sebastian Rees, head of health at IPPR, appealed to employers to take action on the issue.
He said: “Employers have a huge opportunity here.
“By shifting away from alcohol-centric cultures and offering real support, they can boost wellbeing, improve performance, and build more inclusive workplaces.
“This isn’t about banning drinks — it’s about giving people the choice to thrive without pressure. The evidence is clear: doing nothing is costing us all.”
The report acknowledged that increasing the cost of alcohol products could be unpopular with the public and a political risk.
It added that “sustained” lobbying of policymakers by the alcohol industry focuses on the sector’s large contribution to the economy, cited as tens of billions of pounds per year, and jobs supported by the sector.
But the IPPR said this contribution could be overstated as most of these jobs are often part-time and “poorly paid”.
The report’s findings were based on a survey of 2,083 employees across the UK.
A Government spokesperson said: “As part of our 10 Year Health Plan, we are supporting people to make healthier choices through our shift from sickness to prevention as we build an NHS fit for the future.
“This includes committing to introducing a mandatory requirement for alcoholic drinks to display consistent nutritional information and health warning messages.
“The Government has also provided an additional £310 million to improve drug and alcohol treatment services and wider recovery support, including on housing and employment help.”
