Following reports earlier this week, it has been confirmed that the minimum price for alcohol in Scotland will rise by 30% from the end of September as part of the local government’s drive to tackle the health impacts of heavy drinking.
The Scottish government introduced the world-first policy in 2018 which banned retailers from selling alcohol below 50p per unit. The country’s Deputy First Minister Shona Robison announced yesterday that the minimum unit price (MUP) will now be increased to 65p, subject to parliamentary approval.
She said: “Research commended by internationally-renowned public health experts estimated that our world-leading minimum unit pricing policy has saved hundreds of lives, likely averted hundreds of alcohol-attributable hospital admissions and contributed to reducing health inequalities.
“Despite this progress, deaths caused specifically by alcohol rose last year – and my sympathy goes out to all those who have lost a loved one. We believe the proposals, which are supported by Scotland’s chief medical officer, strike a reasonable balance between public health benefits and any effects on the alcoholic drinks market and impact on consumers.”
Robison added: “Evidence suggests there has not been a significant impact on business and industry as a whole.”
The new MUP will mean the cost of a basic bottle of whisky will rise from £14 to £18.20, four cans of 440ml beer (5% ABV) will increase from £4.40 to £5.72, and a 750ml bottle of wine (ABV 13%) will rise from £4.88 to £6.34.
Whilst welcomed by health campaigners, retail bodies hit out at the plans and the impact on their members.
Dr Pete Cheema, Chief Executive of the Scottish Grocers’ Federation (SGF), said: “SGF believes in responsible retailing, and we support the Scottish Government’s aims to reduce alcohol harm. That is why we worked with ministers during the launch of MUP in 2018.
“However, it is clear that the analysis carried out during the Covid pandemic and a swathe of changes to hospitality and drinking habits in recent years, has not been sufficient to justify increasing the MUP.
“Many convenience retailers are working flat-out just to keep the lights on, and doors open. It is often the case that convenience stores are at the very heart of their communities. Providing essential services such as post offices, bill payment services and access to cash.
“Continuing to provide a ‘full basket’ for customers means that if one product category has limited value, then income needs to come from other items. Restrictions and higher prices inevitably come at a greater cost to doing business, putting more pressure on budgets and struggling household incomes.
“Ministers didn’t listen to us on DRS, they didn’t listen to us on NDR, and now they are not listening to us on MUP.”
Meanwhile, the Federation of Independent Retailers (the Fed) warned that rising alcohol prices could put retailers at further risk from retail crime.
Its national vice president, Mo Razzaq, said: “It is not going to tackle the issue of alcohol consumption. Anyone with alcohol abuse issues will steal the product if they cannot afford it, as it is an addiction.”
NAM Implications:
- Pragmatists ‘know’ that the MUP legislation will go through…
- …and that the high street fallout in terms of convenience store and hospitality outlet closures.
- Together with increasing shoplifting of alcohol becoming another economic problem to be dealt with…
- …when big enough to obstruct the political pipeline.
