Price not right for alcohol cost crackdown
15th July, 2013
The Government in England and Wales has dropped plans to introduce minimum pricing for alcohol.
While there are moves to bring in measures to prevent alcohol being sold in shops at below cost price, proposals to follow Scotland’s lead and bring in minimum pricing have been shelved.
What is minimum pricing?
To crack down on alcohol misuse and its attendant health and social problems, it has been proposed in Scotland to introduce a minimum price of 50p per unit for all alcohol sold, whether in supermarkets, off-licences or licensed premises.
The Scottish Parliament passed minimum pricing legislation in May last year, but a trade body, the Scottish Whisky Association, opposed the move in the courts, saying it will breach European law.
An initial challenge failed, but the SWA is set to appeal – and the law will not be implemented until legal proceedings are complete.
Prime Minister David Cameron had suggested last year that minimum pricing could be adopted in England and Wales.
However, after a Home Office consultation on proposals ended in February, the Government has decided to drop the plan.
Why is it being scrapped?
An official reason has yet to be put forward, but it is thought that a combination of legal issues surrounding the introduction of a system and the prospect of fighting off a series of challenges from the drinks industry has put the Government off.
Political observers also suggest the Government did not want to get involved in a lengthy battle over a measure which may prove unpopular with sections of the electorate.
What has the reaction been?
Health campaigners have criticised the Government for dropping the plans with Alcohol Concern saying it would be “a dark day” for the nation’s health.
On the other side, the drinks industry has said there is little evidence that raising the price of alcohol will cut down on problem drinking.
Is this the end for minimum pricing?
In its current form, it seems likely that the answer is ‘yes’ – certainly for England and Wales.
However, the availability of low-priced alcohol remains a focus of Government attention and it is likely that some measure to stop so-called “loss leader” deals – where alcohol is sold at less than cost price – will come into force.
This may be similar to the Alcohol Act in Scotland, which was brought into force in October 2011 and includes a ban on quantity discounts in off-licence alcohol sales that encourage customers to purchase more than they might have and a restriction on where material promoting alcohol may be displayed.
Where can I get more information?
For further details on minimum pricing or on any other aspect of licensing law, please get in touch.
Please note that this briefing is designed to be informative, not advisory and represents our understanding of English law and practice as at the date indicated. We would always recommend that you should seek specific guidance on any particular legal issue.
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