UK minimum pricing plans could be scrapped

Plans to introduce a minimum pricing structure for alcohol in England and Wales could be dropped after several cabinet ministers opposed the idea.

The controversial minimum pricing plans could be scrapped in England and Wales

The plans, which experts claim could significantly reduce alcohol-related deaths, have been strongly opposed by ministers including home secretary Theresa May, education secretary Michael Gove and commons leader Andrew Lansley after the Wine and Spirit Trade Association (WSTA) produced its own research suggesting it would have little effect on curbing alcohol-related health issues and crime.

The trade body claims proposals for a 45p minimum price per unit of alcohol would instead lead to an increase in fake alcohol production and bootleg alcohol sales.

In its submission to the Government’s10-week consultation on the matter, which closed last month, Miles Beale, chief executive of the WSTA, said: “Consumers in the UK already pay some of the highest prices in Europe for alcohol and further price rises could result in some serious unintended consequences that the Government has failed to consider.

“The Government’s plans to set higher alcohol prices could increase illicit, unregulated sales of alcohol which will risk harming consumers and depriving the Treasury of revenue.

“It will also have a massive detrimental effect on the UK economy, making British businesses more vulnerable as they lose out to cheaper, and sometimes illegal, sources.”

Beale claims its own research shows alcohol consumption is falling already. “Minimum unit pricing would penalise responsible drinkers and treat everyone who is looking for value in their shopping as a binge-drinker”, he said.

According to the research, published in December 2012, total alcohol sales fell 2% in the off-trade and 3% in the on-trade during the previous 12 months.

The trade body is instead calling for a below-cost ban as an alternative to minimum pricing.

It’s now expected that the chancellor will announce a u-turn on the plans during next week’s Budget, at the same time setting out forward-looking plans for alcohol duty.

A legal challenge against the Scottish minimum pricing policy is still underway.