The UK government on 27 March proposed a minimum price of 40 pence per unit of alcohol in England and Wales – a bottle of wine contains 10 units – in an effort to “turn the tide” against binge drinking. Similar proposals are already under consideration in Scotland.
Under such price proposals, retailers are prohibited from offering alcohol at cheaper rates, though some in the British alcohol industry suggested minimum pricing would face a court challenge on competition grounds.
Commission set to evaluate its alcohol strategy
A Commission spokesman told EurActiv the EU’s alcohol strategy will be "evaluated" later this year. “From the EU’s tax policy angle, the Commission believes minimum tax rates to be preferable to minimum pricing for alcohol.”
Minimum excise rates “put all products on an equal footing from a market perspective, whereas minimum prices can increase the profit margin of products with the lowest production cost,” the spokesman said.
Making alcohol more expensive was only "one of the possible measures to reduce alcohol-related harm”, the spokesman aid.
Price measures should form part of a comprehensive approach to alcohol abuse and fall mainly under the responsibility of member states, the spokesman added. He said that in relation to its evaluation of its informal alcohol strategy, which the EU executive is finalising later this year, “the Commission has been discussing pricing issues with industry, member states and NGOs”.
UK proposal would benefit supermarkets
The UK move came as part of a general strategy document on alcohol, which plans to “change the drinking culture, from one of excess to one of responsibility”, and to “end the notion that drinking is an unqualified right”.
The UK government’s plans to impose a minimum unit price could bring an annual £850 million windfall for the drinks industry, according to a leading think tank, the Institute for Fiscal Studies.
The IFS said the UK would be better to introduce a “floor price” for alcohol through the duty system instead so that the revenue raised went to the Treasury rather than manufacturers.
Consumption of alcohol in the UK has doubled since the 1950s and there are now 10 million adults drinking more than they should, government figures show.





