Alcohol Policy UK

Alcohol pricing news and updates: Green King response to IFS report; HMRC analysis

The brewer and pub owner Greene King has called for the "minimum pricing debate to continue" following a policy shift towards taxation and banning 'below cost' sales. Greene King, who have previously spoken out in favour of minimum pricing, commissioned a review of the IFS alcohol pricing report which urged higher taxation over minimum pricing.

Review of IFS Impact of Introducing a Minimum Price on Alcohol in Britain [pdf]

In a press release, Greene King stated that minimum pricing would be a "targeted solution", "raising the level of the lowest priced alcohol and directly tackling the behaviour which is causing most concern." However it also suggested that in contrast to the IFS report, the alcohol industry would not benefit from increased profit - in fact it could lose as much as £1.2 billion per year. See also a letter to the Telegraph from the Greene King chief executive Rooney Anand.

The report sets out that the IFS pricing report is a 'high quality and useful contribution', but outlines three key areas of further analysis:

1. Using HMRC estimates of the UK price elasticity of demand for the off-trade implies little or no transfer of revenues and profits to alcohol producers and off-licence retailers.
2. A minimum price may be a more targeted and effective option than a tax rise if the main policy objective is to deter problem drinking.
3. Either the minimum price or a tax increase could result in more legal and illicit crossborder trade, although the scale of the problem might be expected to be greater with the tax option.

The report did not consider whether minimum pricing would be legal under EU law. Recently the Government announced changes to alcohol taxation on low and high strength beers. An announcement is also soon expected on a form of below cost ban whilst MPs continue to raise the issue of cheap alcohol. See our table highlighting the main pricing policy differences.

HMRC alcohol pricing elasticities reports have been released:

• Econometric Analysis of Alcohol Consumption in the UK
• Econometric Models of Alcohol Demand in the United Kingdom

In Scotland attention on price continues following the passing of the recent Alcohol Bill without the hotly debated 45p minimum price proposal. A recent study looking at drink type and price impact on health made the news in The Herald.

Health Survey for England - 2009: Health and lifestyles

The NHS information centre has released the latest 'Health Survey for England - 2009: Health and lifestyles'. The annual survey measures health-related behaviours and lifestyles in England including alcohol consumption, smoking and diet. On alcohol it reports:

"The current recommendations for daily alcohol intake are that it should not regularly exceed three to four units for men and two to three units for women. In the last week, 43% of men and 31% of women had drunk more than the recommended maximum on at least one day. This includes 25% of men and 15% of women who had drunk more than twice the recommended maximum.

Younger age groups and those with higher incomes were most likely to have drunk more than twice the recommended limits on at least one day in the last week."

Source: HSE 2009

A press release highlighted higher income groups are more likely to drink twice the recommended guidelines - findings already shown by the more detailed NHS Statistics on Alcohol 2010. However lower income groups are more likely to suffer alcohol-related conditions due to health inequality factors.

For further alcohol-related consumption data, see data pages on the Alcohol Learning Centre and factsheets from the Institute of Alcohol Studies. 

Localism bill gives communities right to buy pubs

The Localism Bill has been published, giving local people and organisations the right to buy community assets like pubs, shops and libraries. But council spending cuts of up to of up to 28% over four years were also announced. See here for the Localism Bill at a glance.

Pubs and community assets could be bought by community groups if councils put them up on a 'most wanted list' - local people would then have time to prepare a business plan and raise the funds to bid for it. The idea of community groups owning local pubs embodies the Conservative's topical 'big society' idea.

In a CLG press release Communities Secretary Eric Pickles, said:

"This powerful series of measures puts new rights in law for people to protect, improve and even run important frontline services. For too long people have been powerless to intervene as vital community resources disappear from their areas. The Community Rights measures will put control back where it belongs - with the people at the heart of our villages, towns and cities."

Pickles also wrote in the Telegraph that the Bill 'gives town halls back their clout'. But in a Morning Advertiser article, MP and community pubs Minister Greg Mullholland warned the Great British Pub faces a critical year with the VAT rise due and cheap off-sales set to continue.

News and comments Dec 2010: reaction to Drugs Strategy, Public Health White Paper and Licensing reforms; further news

Early responses to the new 2010 Drugs Strategy have been released by Drugscope, Addaction and the NTA. Reports from the BBC, Guardian and a Telegraph comment. Follow DS Daily for more.

Following the release of the public health White Paper, a summary of alcohol references have been highlighted on the ALC. An article in the Independent asks whether Lansley's policies are 'Nudge or Fudge', the Telegraph reporting 'no more nanny state'. The Guardian published a supportive GP comment and a radical critique on responding alcohol misuse. The Conservative MP Sarah Wollaston expressed support for minimum pricing in an outspoken interview on public health policy.

Following the announcement of the Licensing Act changes, there have been many reports and comments from the trade journals such as the Morning Advertiser (MA) and The Publican. The MA have continued to highlight concerns for the on trade and accusations of policy makers paying lip service to pubs. Another report, Government explains off-trade inaction is backed by a comment on 'the government assault on progress' whilst trade chiefs have said the reforms could cost them £1m per week. Publican reports have included will the late-night levy become a legal battleground? but also highlighted MPs speak up for pubs in Westminster debate.

Other news reports

As home drinking becomes an increasingly popular topic for debate, the Telegraph reports Supermarket sells smaller wine bottles to curb home drinking.

Drinkaware have suggested soaps should change their portrayal of alcohol from 'perpetuating a false and potentially damaging view of alcohol'. A research report suggested that little or no representation of the everyday effects of excessive drinking may normalise a false belief of consequence free binge drinking. Drinkaware are meeting with TV producers to advise soaps to better depict the risks associated with alcohol. See more here.

In other news, binge drinking doubles heart risk a British Medical Journal report finds. Research from Mintel expects a fall in Christmas alcohol sales this year reports the BBC. Underage test purchases are 'not effective' according to a study which says a more holistic approach is required. The Publican reports students are unhappy over media's portrayal of drinking habits.

Drug strategy 2010 outlines joint drug and alcohol treatment objectives

The 2010 drugs strategy Reducing demand, restricting supply, building recovery: supporting people to live a drug-free life has been released by the Home Office. It outlines that "severe alcohol dependence raises similar issues [to drug dependence] and that treatment providers are often one and the same. Therefore, where appropriate, this strategy will also consider severe alcohol dependency."

An alcohol chapter on page 7 states:

'Alcohol plays an important part in the cultural life of this country, with large numbers employed in production, retail and the hospitality industry. Pubs, bars and clubs contribute to community and family life and also generate valuable revenue to the economy. However, alcohol is a regulated product. Some individuals misuse it, contributing to crime and anti-social behaviour, preventable illness and early death.

The estimated £18-25 billion a year cost of alcohol misuse spans alcohol related disorders and diseases, crime, loss of productivity in the workplace and health and social problems experienced by those who misuse alcohol and the impact this has on their families14. For the NHS alone, the estimated financial burden of the harmful use of alcohol (regularly drinking at increasing or higher risk levels) is around £2.7 billion.

The evidence suggests that a dependent drinker costs the NHS twice as much as other alcohol misusers and that the largest and most immediate reduction in alcohol-related admissions can be delivered by intervening with this group through the provision of specialist treatment.

It is estimated that 1.6 million people have mild, moderate or severe alcohol dependence. About a third of these will face some challenges that are similar to those dependent on drugs in needing support to help them recover. It is specialist alcohol treatment, for those in this group who would benefit from treatment, that this strategy aims to improve.'

Also released this week was the Ministry of Justice Green Paper and consultation Breaking the cycle: effective punishment, rehabilitation and sentencing of offenders. Last week the public health White Paper was released, outlining the new Public Health England service and ring-fenced budget for local authorities.

Offender Health: SMART recovery guidance for prisons and probation; Alcohol services review

Two new guidance documents are available from SMART recovery UK, a growing peer support (mutual aid) organisation. 

• Guidance for Prisons How promoting SMART Recovery can help improve abstinent recovery and reduce re-offending

• Guidance for Probation How promoting SMART Recovery can improve abstinent outcomes for DRR and ATR’s and reduce re-offending

A SMART recovery guidance document is available anyone who wishes to support the establishment of SMART Recovery meetings in their area.

A report  Offender Health: Alcohol Services Review - Summary has been produced by the Centre for Public Health, Liverpool John Moores University (JMU). It reports that a range of alcohol focused interventions are available across offender settings, but significant geographical variation in provision and a lack of community-based offender-specific services in some areas.

Further Offender Health documents can be found here on the Alcohol Learning Centre.

No cut in alcohol drink drive limit but call for tougher enforcement; 'Think' drink driving campaign 2010

The Transport Select Committee has not advised to cut the current drink-drive limit in its first report to the new parliament. Earlier this year a seperate report called for the drink-drive limit to be reduced from 80mg of alcohol per 100ml of blood to 50mg, as in most of Europe. However the committee suggested that a cut to "effectively zero" should be sought as a longer term aim, but advised such a 'drastic, immediate change in the law' would be too unpopular at present. 

The committee advised first for further alcohol awareness campaigns and enforcement of the existing level. Currently only 3% of drivers in the UK are stopped and tested compared to the European average of 16%. The committee attributed success of Great Britain’s current drink driving policy largely to the deterrent effect of the 12-month mandatory disqualification penalty. A fine of up to £5,000 and up to 6 months in prison can also be given - see here for drink-driving FAQs.

Launching the report, committee chair Louise Ellman said:

“We do believe enforcement of drink drive law in Great Britain must become much more visible, frequent, sustained and well-publicised.

We believe stronger enforcement must be coupled with an extensive Government education campaign—focused on the strength of alcoholic drinks and their effect in the body—run in conjunction with the pub, restaurant and hospitality industry.”

See reports from Sky news, the Morning Advertiser and the RAC.

The Think! drink driving campaign for 2010 has new materials and is also promoting a partnership scheme with Coca-Cola. The initiative will reward designated drivers with free Coca-Cola soft drinks during December in participating venues.

Licensing act 2010 reform: no 'below cost ban' but late night levy and say for health boards

The Home Office has published its plans for re-balancing the Licensing Act which aims to give more power to local communities. However recent speculation that a below cost ban was soon to be introduced was proven false, though the Government have stated they remain committed to bringing in the ban. Plans to give health bodies powers as responsible authorities and the introduction of a late night levy look set to go ahead. See the Home Office press release.

The changes are to be brought in through the Police Reform and Social Responsibility Bill and also outline a commitment to review the mandatory code. The fine for persistent underage sales is to be doubled whilst the unused Alcohol Disorder Zones are to be scrapped (not to be confused with popular controlled drinking areas).

The Home Office have released a Government response to the consultation and made factsheets available on the main proposals, including:

• applications to give greater consideration to the local area 
• late night levy
• making health bodies responsible authorities
• making relevant licensing authorities responsible authorities
• persistent sales of alcohol to children
• reducing the burden of proof
• cumulative impact policies

The Independent reported that as much as half of all pubs and clubs with late night licenses could cut their licensing hours to avoid an annual levy of up to £4,480, based on information from an impact assessment (parts one and two). See reports from the Publican and Morning Advertiser.

BBC home affairs editor Mark Easton looks back on the recent era of licensing in The myths of 24 hour drinking.