News
Minimum alcohol price levels planned by coalition
18/01/2011
Plans for a minimum price for alcohol in England and Wales are to be announced by ministers.
Shops and bars will be prevented from selling drinks for less than the tax they pay on them.
The minimum pricing would work out at 38p for a can of weak lager and £10.71 for a litre bottle of vodka.
The aim is to prevent binge drinking, but campaigners say the proposed new rules do not go far enough.
Last September, the Scottish Parliament rejected plans for a minimum price per unit of alcohol of 45p, after opposition MSPs said the move would penalise responsible drinkers and could be illegal under European competition law.
Ministers in Northern Ireland have called for controls to prevent the cheap sale of alcohol.
The Home Office said the move for England and Wales was designed to address the issue of binge drinking, which has been linked to chronic health problems and social disorder.
The government is planning to ban the sale of alcohol below "cost price", which is defined as the tax drinkers pay - duty plus VAT.
Shortly after it was formed last May, it revealed plans to ban selling alcohol for less than it costs the retailer to buy from the industry.
It was aimed at supermarkets who use alcohol as a "loss leader" to attract customers and make money from other items in the shopping basket.
The proposed ban was left out of the Police Reform and Social Responsibility Bill in November, which included a major shake-up of the licensing laws.
It is understood defining cost price as anything other than duty plus VAT would have created serious legal difficulties.
Researchers at Sheffield University estimated last year that raising the price of alcohol to a minimum of 50p per unit would mean that after a decade there would be almost 3,000 fewer deaths every year and 41,000 fewer cases of chronic illness.
The idea was backed by campaigners and health experts, including the National Institute for Health and Clinical Excellence.
But the Home Office is proposing to set a lower minimum price of about 21p per unit of beer and 28p per unit of spirits.
This means the lowest possible price of a can of lager would range from 38p to 78p depending on its strength, but most alcoholic drinks would be unaffected because they are currently priced above the level
As supply and price are not the only factors driving alcohol misuse, it is imperative that we challenge people's relationship with alcohol as well"
End Quote Chris Sorek Drinkaware Send your comments
The British Medical Association said the proposals did not go far enough.
"It's not minimum pricing, it's not really going to make that much difference," said a spokeswoman.
"What we're calling for is tough action."
Don Shenker, chief executive of Alcohol Concern, said: "Duty is so low in the UK that it will still be possible to sell very cheap alcohol and be within the law.
"The government needs to look again at a minimum price per unit of alcohol. That is the only evidence-based approach that will end cheap discounts once and for all."
Drinks giant Diageo, which is against any below-cost ban, said the move was "the least distorting option worthy of further consideration".
A spokeswoman for the firm said: "We believe the government should concentrate on raising awareness of the dangers of alcohol misuse for adults, providing effective education on alcohol for under-18s and enforcing existing legislation on licensing and under-age sales."
Chris Sorek, chief executive of the charity Drinkaware, added that a range of measures were needed to tackle alcohol-related problems.
"As supply and price are not the only factors driving alcohol misuse, it is imperative that we challenge people's relationship with alcohol as well," he said.
Source - BBC News 18/01/11
Shops and bars will be prevented from selling drinks for less than the tax they pay on them.
The minimum pricing would work out at 38p for a can of weak lager and £10.71 for a litre bottle of vodka.
The aim is to prevent binge drinking, but campaigners say the proposed new rules do not go far enough.
Last September, the Scottish Parliament rejected plans for a minimum price per unit of alcohol of 45p, after opposition MSPs said the move would penalise responsible drinkers and could be illegal under European competition law.
Ministers in Northern Ireland have called for controls to prevent the cheap sale of alcohol.
The Home Office said the move for England and Wales was designed to address the issue of binge drinking, which has been linked to chronic health problems and social disorder.
The government is planning to ban the sale of alcohol below "cost price", which is defined as the tax drinkers pay - duty plus VAT.
Shortly after it was formed last May, it revealed plans to ban selling alcohol for less than it costs the retailer to buy from the industry.
It was aimed at supermarkets who use alcohol as a "loss leader" to attract customers and make money from other items in the shopping basket.
The proposed ban was left out of the Police Reform and Social Responsibility Bill in November, which included a major shake-up of the licensing laws.
It is understood defining cost price as anything other than duty plus VAT would have created serious legal difficulties.
Researchers at Sheffield University estimated last year that raising the price of alcohol to a minimum of 50p per unit would mean that after a decade there would be almost 3,000 fewer deaths every year and 41,000 fewer cases of chronic illness.
The idea was backed by campaigners and health experts, including the National Institute for Health and Clinical Excellence.
But the Home Office is proposing to set a lower minimum price of about 21p per unit of beer and 28p per unit of spirits.
This means the lowest possible price of a can of lager would range from 38p to 78p depending on its strength, but most alcoholic drinks would be unaffected because they are currently priced above the level
As supply and price are not the only factors driving alcohol misuse, it is imperative that we challenge people's relationship with alcohol as well"
End Quote Chris Sorek Drinkaware Send your comments
The British Medical Association said the proposals did not go far enough.
"It's not minimum pricing, it's not really going to make that much difference," said a spokeswoman.
"What we're calling for is tough action."
Don Shenker, chief executive of Alcohol Concern, said: "Duty is so low in the UK that it will still be possible to sell very cheap alcohol and be within the law.
"The government needs to look again at a minimum price per unit of alcohol. That is the only evidence-based approach that will end cheap discounts once and for all."
Drinks giant Diageo, which is against any below-cost ban, said the move was "the least distorting option worthy of further consideration".
A spokeswoman for the firm said: "We believe the government should concentrate on raising awareness of the dangers of alcohol misuse for adults, providing effective education on alcohol for under-18s and enforcing existing legislation on licensing and under-age sales."
Chris Sorek, chief executive of the charity Drinkaware, added that a range of measures were needed to tackle alcohol-related problems.
"As supply and price are not the only factors driving alcohol misuse, it is imperative that we challenge people's relationship with alcohol as well," he said.
Source - BBC News 18/01/11