Lib Dems unveil minimum pricing plans

The Lib Dems have unveiled plans of how they would introduce a minimum pricing scheme.

In a letter to Enterprise licensee Inez Ward, of Mavericks in Newquay, Lib Dem leader Nick Clegg slammed the Chancellor's duty rises as "little more than a tax grab" and said he was deeply concerned that despite high levels of inflation, the cost of some alcohol in shops had fallen by 20% in the last 12 months.

Ward had written to all three political party leaders, on behalf of campaign group Justice for Licensees, but has so far only received a response from Clegg. She had asked the parties how they would stem the flow of pub closures by dealing with cheap supermarket alcohol and improving the pubco-tenant relationship.

"The most important question of all the questions that are going to be asked, is whether there is a Government, present or future, which is going to help the pub trade," she said.

Clegg answered: "In order to tackle shops who sell alcohol at an irresponsibly low level, the Liberal Democrats will introduce a minimum price for alcohol.

"Unlike the case with duty increases, this has the advantage of tackling sales likely to contribute to binge drinking while ensuring that the majority of people who do not buy highly discounted alcohol and consume it in responsible amounts are not penalised.

"Similarly, and noting that pubs are closing at a rate of 50 a month, such a move does not penalise responsibly run pubs."

Competition Act​

He added: "We would make an exemption under the Competition Act 1998 to allow minimum pricing of alcohol. Deciding what the minimum price should be for each form of alcohol would be dependent on a number of factors; namely working to meet specific health objectives while at the same time minimising price distortion for the majority of the alcohol market.

"Setting minimum prices on the basis of these considerations requires a detailed understanding of the market and should not be made on a political basis. The Liberal Democrats propose setting up an independent board of economists and industry and health specialists to make recommendations on minimum prices."

Clegg did not comment on the issue of the pubco-tenant relationship.