The Government Shelves Plans For Alcohol Minimum Pricing Laws

The UK government has scrapped its plans to introduce a minimum price on alcohol across England and Wales. Although we weren’t too saddened here at apt to hear that the plans won’t be followed through, it seems brands such as BrewDog, the independent brewer, are voicing their concerns.

Although BrewDog would make no other comment other than to state its disappointment in the decision, the company did add that it stood by its comments made in a blog in March, where co-founder James Watt described the proposal as reflecting ‘the changing dynamic of beer purchasing in the UK’.

At the time, he stated “The new minimum price of £0.50 per unit for Scotland and the proposed £0.45 a unit for the rest of the UK will not affect any craft brewers pricing (Punk IPA currently retails in the off trade for around £0.90 per unit equivalent). The proposals will mean that the multi-national corporate hammerheads no longer allowed to discount their liquid cardboard to embarrassingly pathetic levels it will act to level the playing field in the off trade. Craft brewers can’t, and shouldn’t, discount their beers and sustain losses. With less of a price differential now in the off trade between industrial and craft beer it will be far easier for the consumer to trade up to awesome craft brews.”

The Wine and Spirit Association on the other hand praised the decision which was confirmed last Thursday, claiming that it recognised the industry’s ‘positive contribution’ to encourage responsible drinking through the Public Health Responsibility Deal.

The initial call for a minimum price to be set for alcoholic products in the UK and Scotland came about due to problem drinking in towns and cities, which turned these areas into effective no-go zones for many people. This has seen an increase in violent attacks and has cost the taxpayer £21bn a year in crime and health issues. Minister Jeremy Browne was concerned however that there was not enough ‘concrete evidence’ that minimum pricing could reduce the harmful effects of problem drinking without striking those who drank responsibly.

Although there will be no action taken here in the UK as confirmed by government officials last week, it is understood that the Scottish Government will continue with its plans to introduce the scheme north of the border. Here in the UK however, it has been confirmed that sales will not be allowed below the cost of alcohol duty and VAT.