Estimates of expenditure on activity to tackle alcohol fraud in 2007-08 and 2008-09 total approximately £22 million. The projected cost for 2009-10 indicates an increase in HMRC and UKBA expenditure of around 12 per cent., to approximately £25 million. This reflects the introduction of new enforcement capabilities, such as specialist teams to carry out civil investigations of fraud, and the establishment of a dedicated inland detection force.
There are no estimates available for the proportion of alcohol duty losses attributable to serious organised crime, compared to other forms of fraud. However, HMRC assessments of the threats to the alcohol regime suggest that organised criminality has become a significant element in the fraud. HMRC’s response, with other law enforcement agencies, is to target these criminals and the networks through which they operate to disrupt, dismantle, penalise and wherever possible prosecute those involved.
No assessment has been made of the relationship between the levels of alcohol duties and levels of alcohol fraud.