Pro-minimum pricing group report admits it won't work

As the coalition pressed ahead this week with its plans for minimum pricing for alcohol, a study funded by one of the policy’s key supporters has found consumers overwhelmingly don’t think it will work.

Peer-reviewed research funded by Alcohol Research UK, an avid supporter of the government’s price intervention plans to tackle binge drinking, concluded there was little evidence the public would support the policy.

The study also revealed deep scepticism that minimum pricing would be effective in cutting alcohol consumption, as well as the view that the policy could exacerbate existing social problems, because it was aimed at problem and underage drinkers but lacked other educational elements.

The findings, which drinks industry leaders said vindicated their opposition to the plans, were published before ministers launched a 10-week consultation on a proposed 45p per unit minimum - 5p higher than previously planned.

Alcohol Research conducted detailed interviews with more than 200 consumers across 28 focus groups.

“Scepticism regarding the effectiveness of the policy emerged,” it concluded. “The overwhelming feeling was [that] people will continue to drink and will adjust to the higher prices, or change choice of drink.”

The study, the “first in-depth data on public views towards minimum pricing”, added that focus groups regard the policy, which is to be accompanied by an across the board ban on multibuy price promotions, as a “universal rather than targeted approach to pricing that would unfairly punish those who drink sensibly, at the expense of the more reckless behaviour of binge drinkers.”

Andrew Cowan, country director for Diageo, said the government’s plans were a “flawed policy based on no credible evidence”. “This policy does not target problem drinkers - it simply hits everyone, the vast majority of whom drink responsibly,” he said.

A Home Office impact assessment suggested the policy would hit poorest consumers hardest and cost the Treasury £200m a year in lost revenue. It also admitted the government had little evidence over the impact on the drinks industry. The assessment predicts a fall in consumption from the off-trade in beer of more than 14%, spirits of nearly 8% and a 0.8% in wine but a 0.2% increase in total inflation.

With the health lobby calling for the 45p recommendation to be increased to 50p to follow plans in Scotland, drinks giant Heineken accused the government of sabotaging its own plans for economic recovery.

“Our modelling suggests if it went up to 50ppu, a bottle of wine would see a price rise equivalent to the past eight years of inflation happening overnight,” said Jeremy Beadles, director of corporate relations. “The vast majority of beer and cider drinkers in the UK drink responsibly. They’re already feeling the pinch and they don’t see why they should be asked to pay more. This research shows that the public don’t support the government taking the powers to set alcohol prices and simply don’t believe that it will be effective in reducing alcohol related crime and antisocial behaviour as the Government claims.”

Morrisons also called on the government to abandon the plans. “Good policy should be evidence based, targeted and effective, and this policy is none of these,” said head of corporate affairs Guy Mason.”David Cameron is facing a backlash from Cabinet and Europe about this policy and now consumers are saying they don’t like it either,” said WSTA chief executive Miles Beale. “It raises serious questions about who he is listening to and why he is pushing ahead.”