David Cameron is looking at how to introduce a minimum pricing scheme for alcohol in England, according to a report in today’s Daily Telegraph.
The newspaper reports that the Prime Minister has ordered officials to develop a scheme that would make it illegal for alcohol to be sold below 40p or 50p per unit, in a move to curb the cheapest deals in supermarkets.
It would reportedly be accompanied by a more Draconian approach alcohol sales in pubs, clubs, and the off-trade, and there would also be an “aggressive” public health campaign.
Such a move, which could mirror plans in Scotland to ban sales below 45p per unit, would represent a significant toughening of the Coalition’s approach towards supermarket pricing. The Government’s current stated plan is to ban sales below duty plus VAT, which critics say will fail to solve the problem because all but the cheapest deals would remain legal.
M&C Report previously reported that the Government has been examining the idea of including production costs in the definition in order to placate its critics.
It’s understood that the minimum pricing idea is unpopular among key members of the Coalition, with Health Secretary Andrew Lansley favouring a voluntary approach to alcohol issues via the Responsibility Deal on Alcohol. The business department has previously warned that minimum pricing could fall foul of European competition laws. Home Secretary Theresa May, meanwhile, is believed to favour the idea of taxing drinks according to unit content.
A Whitehall source quoted in The Daily Telegraph said: “The Prime Minister has decided that when it comes to alcohol, something pretty radical now has to be done and he is keen on the minimum price. It is complicated how this can be delivered, particularly under European law, but it is clear that the voluntary approach has not worked.”
The newspaper also quotes a source saying: “The minimum price is really designed to push up the cheapest alcohol prices, which cause the most damage, rather than an across-the-board rise. The Prime Minister is very concerned about protecting traditional pubs.”
The proposal could be included in the Government’s new alcohol strategy, which is due to be published in early 2012.
