The Welsh Government has proposed a 50 pence per unit minimum unit price (MUP) expected to be introduced in the summer of 2019 following a further consultation.
Wales passed MUP legislation via the The Public Health (Minimum Price for Alcohol) (Wales) Act in June 2018 following an open consultation and Scotland's green light after a long running legal challenge. Scotland introduced a 50p MUP in May 2018 and is currently undertaking a range of evaluation methods to review its impact.
Earlier this year the Sheffield Alcohol Research Group published a report comparing the impact of Minimum Unit Pricing to taxation policies in Wales, reporting that the modelled effects of an MUP 'set at between 35 and 70p would be effective in reducing alcohol consumption among hazardous and, particularly, harmful drinkers', and that 'moderate drinkers would experience only small impacts on their alcohol consumption' of around £3 per year on average. Large alcohol tax increases would be required to achieve the same effects as a 50p minimum unit price, for example a 48% tax increase would be needed to achieve the same reduction in alcohol consumption among harmful drinkers.
The Welsh press release states 'over half of the estimated reduction in consumption would be accounted for by harmful drinkers' resulting in a 'minimal impact on moderate drinkers, accounting for 8% of the reduction in consumption in line with the targeted aim of the legislation'.
The Health Secretary, Vaughan Gething said:
“The ultimate objective of introducing a minimum unit price is to tackle alcohol-related harm, including alcohol-
attributable hospital admissions and alcohol-related deaths in Wales, by reducing alcohol consumption in hazardous and harmful drinkers.
“In particular, the Act is targeted at protecting the health of hazardous and harmful drinkers - including young people - who tend to consume greater quantities of low-cost and high-alcohol content products.
“The higher the level of MUP that is chosen, the greater the proportion of purchased alcohol that is captured and the greater the estimated impact on alcohol-related harms. However, there is a trade-off, as there is also a greater impact on moderate drinkers, particularly moderate drinkers in the more deprived groups. After careful consideration and on balance, my preference is that the initial level of the MUP should be set at 50p. But we will now gather views from individuals, businesses, public bodies and interested parties about the Welsh Government’s preferred price of 50p.”
The Health Secretary's statement reflects the frequently raised questions over MUP with regards to who it affects and what impact it has in terms of 'moderate' drinkers. Previous modelling from Sheffield has suggested that MUP is targeted towards heavy drinkers, although low income heavy drinkers would be affected the most. However it emphasises this group experiences the greatest levels of alcohol harm, as per the alcohol harm paradox.
The Guardian however reported that 'many health professionals and the Liberal Democrats in Scotland believe that 50p is too low a price' given a 50 pence level was proposed as early as 2009 by former Chief Medical Officer for England Liam Donaldson. A 50 pence level was also intended to be introduced in England but followed by an infamous u-turn in 2013 with accusations in a BMJ article that the consultation was a "sham". Instead England introduced a 'below cost ban' in 2014, though it was estimated just 0.7% of units are likely to have been affected and it remains unclear whether retailers actually adjusted retail prices following the ban.
This month the Republic of Ireland has also moved a step closer to MUP via the The Public Health (Alcohol) Bill, setting out a level of 1 euro per 10g (in England a unit is 8g of pure alcohol). News reports said it was over 1,000 days since the bill was first introduced amidst accusations that amendments were 'influenced by significant lobbying from the alcohol industry'. The Bill also includes measures to limit advertising to factual content, introduce mandatory cancer warning labels and regulation of in-store display areas.
Meanwhile in England the government has said MUP “remains under review” whilst Public Health England have been commissioned to review it again as part of plans for a new national alcohol strategy reportedly under development.
See here for recent posts on alcohol policy questions for the UK and Lobbying, policy & politics: implications for the new strategy?.
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