Does minimum alcohol pricing work?

Debate continues over whether increased
taxes will cut alcohol-related deaths and binge drinking

One-Minute Read

Following a landmark ruling against the Scottish Whisky
Association in November, new laws brought in by the SNP government
mean a unit of pure alcohol must now not cost less than 50p.

Proponents of minimum unit pricing argue the move will cut
problem drinking and improve public health by raising the cost of
cheap, strong drinks favoured by young people and
binge-drinkers.

According to the Scottish government, the increase on cheaper
white ciders and value spirits will help to cut alcohol-related
deaths. Scotland’s First Minister Nicola Sturgeon told Sky News the policy would result in
“several hundred fewer deaths from alcohol” and lead to a reduction
in hospital admissions over the next five years.

Twenty-two people die from alcohol related illnesses in Scotland
every week – a problem which costs Scotland’s health system more
than £3bn annually.

But not everyone is convinced, and the issue has proved hugely
divisive among Scots.

Some say there is little evidence the measures will
significantly reduce the number of alcohol-related hospital
admissions and will instead unfairly penalise the majority of
non-problem casual drinkers.

“The price increases being introduced could lead to significant
health improvements,” says the BBC, “but they will be felt by everybody, not only
those with the unhealthiest lifestyles”.

In fact, research by the Institute for Fiscal Studies suggests that heavy
drinkers respond less to price increases than ordinary
drinkers.

Spiked also says price increases could force
some poorer drinkers to look for alternative suppliers, such as
those offering smuggled, unlicensed or counterfeit booze, which
will lack usual regulations and could result in more hospital
admissions for alcohol related illnesses.

Supporters of minimum pricing point to figures which show
the proportion of adults who smoke halved between 1974 and
2013 – at the same time as the real rate of excise duties on
tobacco more than doubled.

“But higher taxes are not the only thing that affected
behaviour, as awareness about the dangers of smoking also increased
significantly,” says the BBC. Many argue that without a widespread
publicity campaign warning of the dangers of drinking to go hand in
hand with minimum pricing, the policy will lack the necessary teeth
or social pressure to be truly effective.

There is also the question of how the drinks industry will
respond. Some fear the new taxes could be passed on directly to
customers to boost drinks companies’ profits; money which could
then be used to increase promotions and advertising.