Brown not keen on minimum pricing

By John Harrington

- Last updated on GMT

Related tags Minimum pricing Alcoholic beverage Liam donaldson

Gordon Brown
Gordon Brown
The Prime Minister speaks out against calls for a 50p-per-unit minimum price.

Gordon Brown has spoken out against calls for a minimum price of 50p per alcohol unit.

The Government's chief medical officer Liam Donaldson today recommended a minimum price of 50p per alcohol unit to combat the effects of "passive drinking" on society.

Donaldson's annual report also calls for public health considerations to be "central to licensing" - which could impact on bids to get new or extended licences for pubs.

However, Gordon Brown gave a cool response to the minimum pricing idea.

"We don't want the responsible, sensible majority of moderate drinkers to have to pay more or suffer as a result of the excesses of a minority," he told a press conference at Number 10 today.

Campaign for Real Ale chief executive Mike Benner said: "It is hypocritical of the Prime Minister to suggest he is a friend of responsible drinkers when it is his Government who hit beer drinkers with staggering 18% increase in beer duty last year.

"If the Prime Minister genuinely wishes to avoid penalizing the majority of moderate drinkers then he must abandon plans for annual above inflation increases in the tax on beer and endorse action to prevent the major supermarkets undermining pubs by selling alcohol at a loss."

Donaldson's minimum pricing plan would put the brake on deep discounting in supermarkets. For example, six 500ml cans of 4% abv lager would cost at least £6, and a 750ml bottle of 12% abv wine wine could cost no less than £4.50.

The report says a 50p minimum price would cut consumption among high-risk drinkers by 10.3%. After 10 years, the policy would cut the number of alcohol-related death by more than one quarter, Donaldson believes.

"Establishing minimum pricing requires Government action," says the report. "Supermarkets are particularly liable to sell alcohol at low prices. Currently, no single supermarket chain would increase its prices and risk losing customers to competitors, and Competition Commission rules prevent supermarkets working together to set prices.

"A minimum price per unit would overcome this problem and help reduce the harms caused by selling alcohol sometimes for as little as 11p a unit."

The recommendation is part of action against what Donaldson calls passive drinking, or the effects of alcohol consumption on others in society.

This includes such things as creating "intimidating and dangerous" public places and behaviour problems among children whose parents drink too much.

Donaldson wants a "national consensus", promoted by Government, that as a country we should "substantially reduce" alcohol consumption.

Combating passive drinking should be the basis of a national campaign and there should also be an economic study into its impact, the report says.

British Beer & Pub Association director of communications Mark Hastings said there are "pros and cons" to the minimum price proposal.

"What the chief medical officer is saying reflects the frustration that we all feel about the continuing use of deep discounting being used by supermarkets as a deliberate sales strategy and the recognition that something needs to be done about this.

"I think we can see arguments in favour and against [minimum pricing]. In favour it would undoubtedly mean supermarkets no longer able to follow the sales practices that they do.

"But equally, there are hidden dangers that once you have a minimum pricing would that become the lobbying point for the health community to try to drive up prices right across the piece?"

Association of Licensed Multiple Retailers chief executive Nick Bish said: "We agree with the health professionals that price and access are two of the most important drivers of alcohol consumption.

"But we fundamentally disagree on the action plan to tackle that. Government policies have made it much more expensive for people to drink in a pub - a controlled, well regulated environment - and fuelled increased consumption at home. A one-size-fits-all pricing approach will do nothing to address this.

"We do undoubtedly need urgent action on drinks at pocket money prices - but this is not it. Instead we would like to see an immediate clamp-down on the off-trade supply - with restrictions on access to product and a ban on below cost sales.

"It works effectively in many other EU countries and would be fairer, quicker and easier to apply than a minimum pricing scheme."

Related topics Legislation

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