Legislation to introduce a 'below cost ban' on alcohol may be announced in the week ahead as part of Government plans to tackle binge drinking. 'Below cost' is now expected to be defined as duty + VAT, but health campaigners say it will fall short of the impact a 50p per unit minimum price policy would have on reducing alcohol-related harm.
The Sunday Telegraph reported the cost thresholds will be £10.50 for a litre bottle of spirits, at least £8.50 for a 20-pack of beer, and at least £2 for a bottle of normal-strength wine. The prices equate roughly to a minimum unit price level of between 18-26 pence, suggesting few drinks or promotions would actually be affected.
The possible definition of 'below cost' has been subject to debate since the Coalition announced it were to implement the ban. Critics have argued it would be unenforceable and suggested that supermarkets can beat a below cost ban based on a duty + VAT definition. Retailers expressed support for the definition and ASDA have already voluntarily introduced it, but Mark Hastings of the BBPA had said "you cannot ignore production and distribution costs and margins".
Don Shenker, chief executive of Alcohol Concern, said: “While we would welcome the government’s acknowledgement that they need to tackle this issue, we would not be convinced that anything other than a minimum price on alcohol, which has a solid evidence base behind it, will be at all effective."
The measure is expected to be announced alongside changes to the Licensing Act as part of the Police and Social Responsibility Bill. The HM Treasury is also reviewing alcohol taxation and intends to 'change alcohol pricing to ensure that it tackles binge drinking'. See here for a channel 4 news report.
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