Alcohol Policy UK

Alcohol Concern urges action on minimum pricing ahead of new national alcohol strategy

Alcohol Concern are calling on the public to urge MPs to push for minimum pricing ahead of the forthcoming national alcohol strategy. Alcohol Concern state:

The next few weeks will be our last chance to influence the shape of the alcohol strategy, which will shape public policy on reducing alcohol harm for years to come. We must act now to counteract the lobbying power of the drinks industry and major retailers.

The Prime Minister has come out in support of minimum pricing, but the Secretary of State for Health has not- this is the moment when we need MPs to call for minimum pricing and help ensure that it becomes government policy.

Up until now, the government has relied largely on voluntary measures by the drinks industry to reduce consumption. Given that the turnover and profitability of the drinks industry is entirely reliant on maintaining or increasing alcohol consumption, there is a clear conflict of interest involved in this approach.

Alcohol Concern are urging people to write to their MP to call for minimum pricing, stating the business case for action. The charity have provided a list of key facts and possible questions to include and a minimum pricing briefing paper. They are also promoting a Twitter hashtag #ActNowOnAlcohol

The Prime Minister David Cameron recently instructed Whitehall officials to look at minimum pricing options according to a Daily Telegraph report. Cameron has repeatedly spoken out on the issue of cheap alcohol, but the Health Secretary Andrew Lansley prefers voluntary action through the controversial Responsibility Deal. The public appear divided on the subject.

Minimum pricing has been at the forefront of the national alcohol policy debate, particularly since the release of research from the University of Sheffield modelling the likely benefits. Supporters cite the link between rising consumption with the falling relative price of alcohol.

However opponents of minimum pricing, such as sections of the alcohol industry and retailers, argue minimum pricing is a blunt measure and could contravene EU legislation. Scotland is currently seeking to introduce a minimum price and so could soon test this, whilst the IFS advise lobbying for EU law changes to allow tax restructuring to achieve a minimum pricing effect.

A 'below cost ban' is due to come in under forthcoming Licensing changes, but  the ban is not expected to not expected to affect prices under a 'Duty + VAT' definition of cost. See here for information on why a below cost ban is not minimum pricing and further reports.

Cameron eyes up minimum pricing says The Telegraph

The Prime Minister David Cameron is reportedly instructing officials to look at minimum pricing options, the much debated population level policy approach to reducing alcohol-related harm. Although Whitehall officials say no decision has yet been made, a Daily Telegraph report suggests measures could be outlined in the forthcoming national alcohol strategy expected in February 2012.

Cameron is reported to have instructed Whitehall officials to look at options to achieve a minimum price by either tax restructuring or, as currently being sought in Scotland, a standard minimum price per unit. Both could face difficulties under EU law as minimum pricing opponents state it breaches competition law, whilst the IFS recently advised lobbying for EU law changes to achieve tax restructuring for this purpose.

The news is controversial given the voluntary approach championed by the Health Secretary who has recently spoken out against minimum pricing. However Cameron has often appeared keen to take decisive action on the “unbelievably low prices of some drinks”, and appeared to back Manchester’s move towards implementing a minimum price via a local bye-law.

The move would be likely to win widespread praise from health groups who have repeatedly called for minimum pricing, citing evidence of the link between falling prices and rising consumption over the last 30 years. Work by the University of Sheffield has modelled the impact of minimum pricing approaches, suggesting a 50 pence per unit minimum could save 3,000 lives a year.

However opponents, mainly sections of the alcohol industry, retailers or those opposed to such Government intervention, refute the evidence and suggest it would unfairly penalise responsible drinkers – a claim equally rejected by its supporters. Interestingly it is the public’s perception of minimum pricing that many say has prevented Governments supporting it. Despite some possible growing acceptance, polls have suggested around half of adults are still opposed to the measure.

Further reports from the Guardian, Daily Mail and the Press Association.

'Alcohol pricing and taxation policies': IFS still favours taxation over minimum pricing

The economics think-tank the Institute for Fiscal Studies (IFS) have published a new report on Alcohol pricing and taxation policies. It echoes many of the findings from a report last year in which it suggested minimum pricing would transfer further profits to industry and retailers, therefore favouring increased taxation. 

The new report however suggests the current alcohol taxation system is not optimal and a "sensible starting point would be to tax all alcohols at an equivalent rate per unit. Such a change would require policy action at the EU level which the Government should pursue."

On the forthcoming 'below-cost ban', the new report states:

'The ban on ‘below-cost’ sales is similarly a very small policy in terms of its likely overall impact. It introduces a de facto minimum price, which varies by alcohol type and strength... However, we estimate that it will affect only 1% of off-licence alcohol units, with virtually no impact on ciders (which have very low duty rates) or alcopops (which tend to be priced more highly per unit in any case).'

The report says a minimum price of 45 pence per unit 'would be a much more significant policy' but raises the question of how producers and retailers would respond:

"the behavioural responses [to minimum pricing] – including those of producers as well as consumers – will be hugely important... For example, how would the price of alcohol currently selling above the minimum change? How would the price of non-alcohol products change? What would happen to the available set of products?'

The IFS also suggests that a minimum price of 45 pence would affect the majority of off-sale consumers, and would affect poorer households as well as heavier drinkers. As a result of these factors and the likely increase in revenue to the industry, the IFS state they would

"...prefer higher and restructured alcohol taxes as an alternative to minimum pricing. At least with taxation the revenues flow to the Government rather than to the industry. Taxes that were more closely focused on the alcohol content of different products could also allow something closer to a minimum price to be introduced through the tax system, perhaps in tandem with a ban on below-tax sales."

However Dr Petra Meier, who conducted the University of Sheffield modelling on pricing impacts has previously said both taxes and minimum pricing should be used to reduce alcohol-related harm as it should not be an 'either or' argument.

Recession and the impact on alcohol consumption; industry news & views - recent DDN alcohol features

The current edition of Drink and Drugs News (DDN), the free substance misuse publication, includes a feature which explores how recession can affect alcohol and drug use. 

The article outlines a talk from Rosalie Liccardo Pacula who described a nuanced relationship between alcohol consumption and economic fluctuations. Based on work from an American economist Chris Ruhm, analysis has shown that economic downturns affect light and heavy drinking very differently. Heavy drinking is shown to be 'pro-cyclical' to the economy - that is when the econonmy is suffering, heavy drinking declines.

Lighter or more moderate drinking however is less affected or is even counter-cyclical. The reason? Lighter drinkers spend far less money on alcohol so alcohol expenditure is less affected by a squeeze. Heavier drinkers however spend a larger proportion of their income on alcohol and are therefore more likely to need to cut back to afford other essentials such as food or clothing.

Don Shenker had stated earlier this year that it was "very likely that alcohol consumption will rise again once the economy picks up", responding to news of a slight fall in alcohol-related deaths.

Other recent DDN alcohol features include:

• Is the alcohol industry using social media to flout marketing guidelines? Alcohol Concern thinks so in recent report, a claim refuted by the industry, writes DDN and finds out what the regulators think.
• Speaking with the enemy? To get anywhere with harm reduction relating to alcohol and tobacco we should be working with the industry instead of vilifying it, says Prof Gerry Stimson
• Always ask about Alcohol (2nd page), says Dr Chris Ford who uses a powerful case study to highlight how often alcohol misuse can be overlooked by professionals

Scotland's minimum pricing plans outlined

The Scottish National Party (SNP) has outlined its plans to introduce a minimum price per unit of alcohol. The Minimum Pricing Bill has not yet set out the proposed price but has commissioned further work by the University of Sheffield to model its likely impact. The SNP's previous attempt at a 45 pence minimum price was blocked by opposition parties when the SNP had a smaller majority.  

The Scottish Cabinet Secretary for Health and Wellbeing Nicola Sturgeon said: 

"We have had a wide ranging debate on alcohol pricing and there is now widespread recognition across the country of the need to tackle pricing... By setting a minimum price for a unit of alcohol, we can raise the price of the cheap supermarket white ciders, lager and value spirits sought out by problem drinkers."

The Government say the cost of alcohol consumption in Scotland is estimated to cost £3.56 billion each year, equivalent to £900 for every adult. Sturgeon said a minimum price was "not a magic bullet", but believes it will save hundreds of lives and millions of pounds over a number of years. The SNP has produced information on the effects of minimum pricing on common drinks and highlighted wide support from health groups.

But certain industry and retail bodies continued to speak out against the proposals, claiming they would breach EU competition law, increase illegal activity or trigger cross-border shopping. Opponents also repeated claims that a minimum price "would punish the responsible majority" - a line a health select committe report has said was a deliberate manipulation of the public's interpretation of the measure.

Speaking to the BBC, Sturgeon rejected claims that minimum pricing would affect responsible drinkers. She said the SNP were not "anti-alcohol", but it was wrong that a teenager could buy a potentially fatal amount of alcohol for less than £5. Brewer and trade body Greene King have also supported the move in expectation that it would help pubs who have lost out to cheap supermarket sales. See a selection of responses for and against the proposals here.

See further news reports including a BBC analysis, a Q&A on the proposals, and BBC news feature.

In England a minimum price is not supported by the Coalition Government who have emphasised voluntary action through the Responsibility Deal, but have committed to a 'below cost ban'. However the ban is not expected to affect prices under a 'Duty + VAT' definition of cost - ASDA who claimed to not to sell at below 'cost' recently came under fire for selling Budweiser at around 16 pence per unit. Manchester is attempting to bring in a regional minimum price via a local bye-law.

News & updates Oct 11: Alcohol-free days; Don Shenker to leave Alcohol Concern; Facebook-Diageo deal; ‘drunkorexia’ - skipping meals to save calories?; trade & industry news

Advice for three alcohol-free days per week has been in the news following evidence given at the inquiry into alcohol consumption guidelines. See reports from the Daily Mail, BBC and The Telegraph.

Sir Ian Gilmore of Royal College of Physicians (RCP) emphasised the need for drinkers to consider the risks of daily alcohol consumption, even in moderate amounts. Gilmore said: ‘In addition to quantity, safe alcohol limits must also take into account frequency. There is an increased risk of liver disease for those who drink daily or near daily compared with those who drink periodically or intermittently." A possible 'binge drinking guideline' of 8 units had also been raised in an earlier session.

Don Shenker is to leave Alcohol Concern, a press release today announced. He had spent six years with the organisation with over three years as Chief Executive (CE). Eric Appleby is returning to act as a part-time Interim CE, alongside the recruitment of a full time Director of Fundraising and Campaigning.

Last month a multimillion-dollar deal agreed between Facebook and Diageo was announced. A Guardian report highlighted concerns over a deliberate strategy to target a younger audience - half of Facebook users are under the age of 24 and many under 18 years old. 

Diageo's US brands had reportedly seen a 20% increase in sales as a result of Facebook activity this year. Alcohol Concern recently released a report on children's exposure to advertising via social networking. Facebook said all its alcohol advertising was 'age-gated' - not allowing under 18s onto alcohol brand pages. Diageo said it complied with 'all applicable laws, regulations and industry codes'.

Young women who 'binge drink' are skipping meals to reduce their calorie intake according to the Daily Mail. The practice termed ‘drunkorexia’ is reportedly affecting young British women, particularly students, following U.S. research that found 16% of students reported restricting calories to 'save them' for drinking. Women were apparently three times more likely to do so, citing wanting to lose weight and spend less money getting drunk as reasons.

Pub, trade and industry

The controversial below cost ban may yet still include production costs, according to the Morning Advertiser. However a source said the Home Office were finding it "increasingly difficult to come up with something that includes the cost of production. Legally it’s a minefield". At present the 'below cost ban' only identifies cost as duty+VAT; ASDA recently came under fire for selling Budweiser for around 16 pence per unit despite committing to the ban.

Community Alcohol Partnerships (CAPs) - local partnership projects which work with retailers to reduce underage drinking - are planning wider roll out following further industry funding. Brighton Council is seeking a VAT rise for off-licence sales according to the MA. More Government action needed to earn its 'pub friendly' claim says CAMRA. The Northern Ireland Health Secretary is intent on minimum pricing according to the BBC.

ASDA under fire for selling Budweiser for under 50p per bottle

Supermarket giant ASDA hit the news after launching a new deal offering 24 bottles of Budweiser for £11 - around 46 pence a bottle or 15 pence per unit. ASDA are part of the Government's Responsibility Deal having signed up to pledges on alcohol, including on its advertising and marketing. 

The supermarket had previously received attention for voluntarily introducing a 'below cost ban' before it was brought in by the Government. However news that 'cost' would be defined as duty + VAT appeared to confirm accusations that the ban would have little effect on the actual price alcohol could be sold for, and was widely confused with minimum pricing.

Outspoken MP Sarah Wollaston recently called for tougher Government alcohol policy, including a 50 pence minimum price - a policy widely supported by health groups by largely opposed by producers and retailers. Wollaston said "There is nothing particularly responsible about our "new responsibility deal". Of course it is good to have the drinks industry's co-operation but we should be setting the standards, rather than them."

Professor Ian Gilmore Prof Ian Gilmore, a liver specialist, condemned the ASDA deal in a Metro report: ‘Again this is another example of a retailer on the one hand pledging to act responsibly while at the same time offering ridiculously cheap offers when buying in bulk.' A Daily Mail article said even pubs or retailers would not be able to purchase drinks so cheaply when buying wholesale.

ASDA defended the deal stating 'We are as committed to our role as a responsible alcohol retailer as we are to providing affordable deals for our customers.’ The major supermarkets are reportedly embroiled in a major 'price war'.

The Cost of Alcohol: The Advocacy for a Minimum Price per Unit in the UK

A new Alcohol Insight exploring the public's perceptions and attitudes to a minimum unit price for alcohol has been published by Alcohol Research UK. The insight, The Cost of Alcohol: The Advocacy for a Minimum Price per Unit in the UK, assessed findings from 28 focus groups on their views towards minimum pricing, its possible outcomes, and how its introduction might be made more acceptable. 

The insight's conclusion states:

'Current findings indicate that participants were largely sceptical of the introduction of a minimum price per unit alcohol-pricing policy and expressed doubts regarding its effectiveness. Participants did, however, suggest that the policy could be made more acceptable if introduced as part of a wider strategy to curb alcohol consumption. Present findings suggest that participants’ objections to a minimum price per unit were the result of three main issues:

1. a misunderstanding of the minimum price per unit policy itself;
2. the failure to recognise the significance of small incremental reductions in alcohol consumption; and
3. a preoccupation with the effects of a minimum price on heavy and dependent drinkers.

Policymakers looking to introduce a minimum price policy should focus on dispelling the misconceptions regarding an alcohol-pricing policy and on highlighting the key features of the policy to counter the misunderstandings expressed by participants in the present research.'

A YouGov survey earlier this year indicated British opinion is split over whether the Government should introduce minimum pricing; 47% were reportedly in favour with 44% against. Full survey results here.

Minimum pricing refers to legislation that would set a minimum price per unit of alcohol, potentially affecting 'loss-leading' or 'high alcohol low cost' drinks sold through off-licensed premises including supermarkets. The likely impact of minimum pricing has been modeled by the University of Sheffield and has been widely called for by health groups, but strongly opposed by sections of the drinks and retail industries.

Minimum pricing has been commonly misinterpreted in England following the introduction of a 'below cost ban' defined as duty + VAT, which is thought to have had no impact on prices. Scotland are however seeking a minimum unit price and have set out information here.

Scotland ban on 'irresponsible promotions' as England introduce 'schooners'

New licensing laws came into force on 1st October 2011 for Scotland, including a mandatory challenge 25 scheme and a ban on irresponsible promotions. The changes are part of the Alcohol etc Scotland Act 2010 and are expected to be followed by plans for a minimum price.

However the changes have been attracting media attention as some retailers could change offers to apply to single drinks - for instance instead of three bottles of wine for £10 retailers may sell one bottle for £3.33. Tesco have reportedly advised Scottish customers that they can still benefit from cut-price deals if they shop online as it will be transported from England.

The Scottish Health Secretary, Nicola Sturgeon, expressed disappointment that some retailers would not be respecting the spirit of the law, but emphaised future plans for a minimum price. In the meantime, she believed the measures would still have some effect, stating: "...if somebody is going to buy one bottle of wine, as they intended to do when they went into the supermarket, instead of three bottles, that they are tempted to buy because it is on offer, then that is helping us reduce alcohol over-consumption."

The changes also pave the way for a social responsibilty levy, which aims to ensure retailers and licensed premises contribute to the wider cost of their activities on the community. Restrictions on the location of drinks promotions are also set out, and the Challenge 25 scheme means all licensed premises must have an age verification policy in place, including anyone appearing under the age of 25 being required to prove their age.

In England, a mandatory code was introduced last year to ban certain irresponsible promotions, such as banning ''all you can drink" deals. A new licensing amendment also came into force this month, allowing premises to now sell 'two-third' pint sizes, known as a 'schooner'. Some have suggested it may encourage responsible drinking, though bodies such as CAMRA have criticised it as unnecessary. Heineken have produced 500,000 branded schooner glasses for pubs across the country.

Alcohol Research UK launched to continue work of the AERC

This month saw the launch of Alcohol Research UK, which takes over the work of the Alcohol Education and Research Council (AERC). The AERC will be abolished in 2012 as part of the Government’s review of ‘Arms Length Bodies’. 

Alcohol Research UK is an independent registered charity, governed by a board of trustees who are assisted by a small dedicated staff team and a number of associates who sit on the Grants Committee. The AERC’s assets and activities were transferred to Alcohol Research UK in March 2011.

During its near 30-year existence, the AERC awarded over 500 project grants and around 200 studentships, with a total value of more than £12 million. It was recognised as a vital funder of research into alcohol-related harm, often being the only source of funding available to institutions and individuals working on important studies in this specialised field.

Alcohol Research UK has three goals for the next five years. They are:

1. To increase the quantity of research that we fund
2. To increase the quality of the research that we fund
3. To create a significant profile amongst and influence over policymakers, practitioners, scientists and general stakeholders

See the Alcohol Research UK blog for comments and insights into the field, or sign up to the newsletter. See here for information on grants, or visit the alcohol library for previously funded research projects and findings.