A Commons standard note on minimum pricing was recently published, outlining 'minimum pricing' terminology and the policy context.
The briefing looks at the differences between a 'below cost ban' and minimum unit pricing (MUP) and the various policy shifts over recent years. It also covers Scotland, where the SNP are pushing ahead with their MUP plans despite legal challenges led by the Scotch Whisky Association.
The British Government recently confirmed it would not be introducing minimum unit pricing despite its 2012 commitment. In publishing its response to the alcohol strategy consultation a proposed ban on multi-buy promotions was also dropped. However previous plans for a 'below cost ban' were resurrected alongside other policies, meaning alcohol will not be sold at lower than duty+VAT to 'stop the worst cases of heavy discounting'.
However the challenges and limitations of a 'below cost ban' have been widely discussed, including difficulties in defining or tracking below cost selling. The University of Sheffield recently published new research that estimated the impact of a below cost ban as "approximately 40 to 50 times smaller than the estimated impact of a 45p MUP".
In 2010 Alcohol Policy UK highlighted the differences between the two policies as well tax increases as a means of price control in the table below. Last year we also looked at claims that 'minimum pricing could backfire'. See here for all APUK pricing reports.
See here for the 2012 Health Select Committe's findings on minimum pricing as part of its response to the alcohol strategy.
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