Minimum alcohol price 'unlikely to reduce UK drinking levels'

Introducing a minimum price for alcohol is unlikely to cut UK drinking levels, according to a report published today.

Ex-Deloitte director Tim Wilson said his research found just over one in five (21%) adults would buy less alcohol if a minimum price was set.

A total of 26% said they would drink the same amount and spend more money, 9% would look for ways to buy alcohol more cheaply and 10% would switch to cheaper brands.

Overall, 52% said they would either spend more on the same amount of drink or look for cheaper alternatives.

Earlier this year, the Chief Medical Officer for England, Sir Liam Donaldson, called for alcohol to be set at 50p per unit.

Prime Minister Gordon Brown distanced himself from Sir Liam's comments, saying the Government did not wish to penalise the majority of sensible drinkers.

Scotland is currently debating introducing a minimum price.

Mr Wilson, who worked in the food and drink division of Deloitte, publishes a quarterly study - the Wilson Drinks Report - based on industry trends and consumer attitudes.

He said: "We are yet to be persuaded that minimum pricing would actually work as intended.

"Research suggests consumers will either take the hit on price or simply switch to a cheaper alternative.

"Minimum pricing is obviously good news for the Government as higher retail prices will yield additional VAT.

"However minimum pricing is both good and bad news for retailers. Any price rise at the till goes directly to the retailer, and they may or may not share any windfalls with their suppliers.

"The research shows that 89% of British adult drinkers buy alcohol in supermarkets.

"Our analysis also shows that retailers' own label alcoholic drinks have some of the lowest prices per unit of alcohol. Any implementation of minimum pricing would hit these drinks the hardest.

"Minimum pricing might be a very simple concept to apply, but the research suggests it is unlikely to reduce consumption. It may also be illegal under EU competition law."

The report found that the proportion of people who drink at home before going on a night out varies by region.

Those in Scotland are the most likely to have at least two drinks at home (22%), compared with 18% in London and 10% in Wales.