Starting in October, Scottish consumers will not be able to purchase a bottle of red wine for less than £6.09 or a bottle of whisky for less than £18.20 due to a 30% increase in the minimum price for alcohol.
Shona Robison, the deputy first minister, confirmed a Guardian story earlier this week that the minimum unit price (MUP) will increase from 50p a unit to 65p to keep pace with inflation and ensure prices are kept relatively high.
Starting on 30 September, the updated prices will take effect. This means that a regular bottle of whisky will increase from £14 to £18.20, a can of lager will now be priced at a minimum of £1.30, and a typical bottle of vodka will be sold for £17.06.
“According to Robison, the harm caused by alcohol remains a major concern in Scotland and is a contributing factor to declining health outcomes. She emphasized that this is especially true for men living in impoverished regions.”
In recent years, the number of deaths related to alcohol has increased, partially due to a rise in consumption during the Covid pandemic.
Robison informed Members of the Scottish Parliament that, despite the government’s current expenditure of £112 million annually on alcohol and drug treatment facilities, they are contemplating implementing a new tax on retailers in order to recoup any additional profits made from minimum unit pricing.
According to the Fraser of Allander Institute, located at Strathclyde University, retailers have made approximately £30 million annually from MUP by keeping the excess amount between the cost of drinks and the wholesale price of the product.
According to Scottish Labour and organizations focused on public health, the justification for implementing a levy has become more compelling. Setting a minimum price of 65p would result in increased profits for businesses. On Thursday, Labour proposed that the funds collected from the levy should be directed towards alcohol treatment and recovery initiatives.
Robison stated that consultations are taking place with businesses and health professionals to consider the possibility of implementing a public health levy in Scotland. A decision will be made before the Scottish budget is finalized this year. From 2012 to 2015, Scotland had a levy on large retailers which generated £95 million.
Robison rejected the Conservative viewpoint that the rise unfairly punished regular customers in the midst of a high cost of living situation. According to expert research, implementing minimum pricing has resulted in a 13.4% decrease in annual deaths caused by alcohol abuse, compared to the expected death rate without MUP, as stated by Robison.
The Scottish Retail Consortium expressed approval for the higher unit price, but was frustrated by the potential implementation of an unproven and unjustified new charge.
“The proposed tax increases are merely an attempt to obtain more money disguised as a way to benefit from an already struggling industry,” stated Ewan MacDonald-Russell, the deputy CEO of the company.
Source: theguardian.com
