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PRIVACY
Economic Development

Chris Game: Has No.10 lost its bottle on alcohol pricing?

Chris Game examines an issue notable by its absence in the Queen's Speech - minimum pricing for alcohol.
A customer looks at alcohol on the shelf at a supermarket

Chris Game examines an issue notable by its absence in the Queen's Speech - minimum pricing for alcohol.

Compared to his EU referendum contortions, David Cameron’s about-turn on public health reform, and specifically the omission from this week’s Queen’s Speech of any legislative proposals for either plain cigarette packets or a Minimum Unit Price (MUP) for alcohol seems perhaps, well, small beer.

By most U-turn standards, though, the latest minimum pricing one especially, which is the subject of this article, was about as “handbrakey” as they come, adding, many will surely feel, another rather shabby chapter to an already unedifying record of recent governments of all parties.

The last Labour Government, whose initial solutions to binge drinking were reduced excise duties and 24-hour opening, opposed any and all forms of minimum alcohol pricing.

The then Chief Medical Officer, Sir Liam Donaldson, summarised the evidence as he saw it. There is a clear relationship between price and consumption of alcohol, particularly – not except, as opponents often allege – among heavy drinkers. These latter tend to choose cheaper drinks, and an MUP would therefore affect them “far more” than those who drink in moderation.

Sir Liam recommended a minimum price of 50p per unit, which Alcohol Concern calculate, using Sainsbury’s current basic prices, could increase the price of an economy can of lager from 25p to 58p, a two-litre bottle of strong cider from £1.89 to £8.14, a cheap bottle of wine from £3.49 to £4.05, and one of vodka from £9.29 to £13.13.

Sir Liam’s recommendations, though, were rejected before they were even published. The Brown Government’s party line was that “the majority of sensible drinkers should not have to pay for the irresponsible drinking by a small minority”.

The Conservatives and Liberal Democrats were less dismissive, but their Coalition Agreement changed the terminology from MUP to BCP: “We will ban the sale of alcohol below cost price”. Which sounded positive until you realised that their idea of cost price probably isn’t yours.