UK Govt drops MUP for below-cost ban
While Scotland intends proceeding with plans to introduce Minimum Unit Pricing despite the probablity that the proposal could contravene European competition legislation, the UK Government has dropped plans to introduce MUP in England and Wales from its strategy to combat alcohol abuse.
Print22 August 2013
The Minister of State at the Home Office Jeremy Browne admitted recently that the Government hadn’t enough “concrete evidence” that MUP would work although it will remain “a policy under consideration but will not be taken forward at this time”.
However a ban on selling alcohol below the rate of duty plus VAT will be introduced “no later than Spring 2014” he added.
The proposal to make multi-buy promotions illegal has also been scrapped due to a “lack of convincing evidence” commented Jeremy Browne.
The announcement was welcomed by a number of UK trade bodies including the Wine & Spirit Trade Association representing over 340 companies producing, importing, transporting and selling wines and spirits.
WSTA Chief Executive Miles Beale responded to the recent publication of the Government’s Alcohol Strategy consultation, stating, “We welcome the Government’s recognition of the industry’s positive contribution to encouraging responsible drinking through the Public Health Responsibility Deal. It is only by working in partnership with industry that alcohol misuse in the UK can be tackled effectively. Pledges such as removing 1 billion units from the UK alcohol market are testament to this approach and to the industry’s commitment”.
The WSTA remained opposed to Minimum Unit Pricing and agreed “…that there is insufficient evidence to support the introduction of MUP. It would unfairly penalise the majority of responsible consumers while doing little to tackle the root causes of alcohol misuse”.
However he added, “We are pleased that the Government has also considered the evidence on multi-buy promotions and will now not proceed with these restrictions which would have adversely affected millions of consumers and businesses while doing nothing to tackle problem drinkers”.
The WSTA supports a ban on below-cost selling at the level of duty plus VAT though.
“We have maintained for some time that this will deal with the worst cases of deeply discounted alcohol without impacting on the majority of responsible drinkers,” stated Miles Beale, “Now that the consultation is complete we look forward to working in partnership with Government and others, including the health community, on solutions that are proven and effective in tackling alcohol misuse – such as Community Alcohol Partnerships and better education and information campaigns”.
However the UK’s on-trade seems less enamoured by the Government’s decision.
Kate Nicholls, Strategic Affairs Director at the Association of Licensed Multiple Retailers, commented, “We’re extremely disappointed that the Government has not grasped the nettle and taken meaningful action to stop the sales of pocket-money-priced alcohol and irresponsible promotions in the off-trade which are together fuelling unsupervised consumption and contributing to alcohol-related harms.
“With more than 70% of alcohol now consumed away from the safe, regulated and supervised environment of a pub, now is not the time for more punative measures on the on-trade. It is risible that the Government talks about needing tougher more effective enforcement of promotions in pubs and clubs whilst at the same time leaving the supermarkets effectively unregulated. This is a missed opportunity,” she concluded.
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