Supreme Court backs Scottish minimum alcohol pricing
The UK Supreme Court has ruled that Scotland can set a minimum price for alcohol, rejecting a challenge by the Scotch Whisky Association (SWA).
Legislation was approved by the Scottish Parliament five years ago but has been tied up in court challenges.
In a unanimous judgment, seven Supreme Court judges said the legislation did not breach European Union law.
The judges ruled the measure was a “proportionate means of achieving a legitimate aim”.
Ministers said a 50p-per-unit minimum would help tackle Scotland’s “unhealthy relationship with drink” by raising the price of cheap, high-strength alcohol.
The whisky association had claimed the move was a “restriction on trade” and there were more effective ways of tackling alcohol misuse.
After the Supreme Court verdict, ministers are expected to make Scotland the first country in the world to establish a minimum price per unit of alcohol, possibly early next year.
A small number of countries, including Canada and Russia, have some form of minimum price structure, according to the Institute for Alcohol Studies.
Many others have rules aimed at restricting cheap alcohol sales.
Scotland’s First Minister Nicola Sturgeon tweeted: “Absolutely delighted that minimum pricing has been upheld by the Supreme Court.
“This has been a long road – and no doubt the policy will continue to have its critics – but it is a bold and necessary move to improve public health.”
The Scotch Whisky Association said it accepted the Supreme Court’s ruling.
How does minimum pricing work?
The Scottish government’s aim is to reduce the amount that problem drinkers consume simply by raising the price of the strongest, cheapest alcohol.
The move is not a tax or duty increase. It is a price hike for the cheapest drink, with any extra cash going to the retailer.
Last year, Alcohol Focus Scotland claimed the maximum recommended weekly intake of alcohol (14 units) could be bought for just £2.52.
It said super-strength cider and own-brand vodka and whisky could be purchased for as little as 18p per unit of alcohol.
The 50p-per-unit minimum outlined by the legislation would raise the price of the cheapest bottle of red wine (9.4 units of alcohol) to £4.69, a four-pack of 500ml cans of 4% lager (8 units) would cost at least £4 and a 70cl bottle of whisky (28 units of alcohol) could not be sold for less than £14.
Normal strength cider (5% ABV) would cost at least £2.50 a litre but a super-strength version (7.5% ABV) would have to cost a minimum of £3.75 for a litre.
Off-sales and supermarkets
Minimum pricing will not raise the prices of all alcoholic drinks because many are already above the threshold.
Pubs and bars are unlikely to be affected as they usually charge much more than 50p per unit.
The aim is to hit consumption of strong alcohol which is sold at low prices.
The new laws would be “experimental” and expire after six years unless renewed.
Supporters of minimum pricing believe the move is necessary to tackle the country’s binge drinking culture, with Scots buying 20% more alcohol on average than people in England or Wales.
What the Supreme Court said
The judges at the Supreme Court rejected the Scotch Whisky Association’s claim that an excise duty or tax would be an equally effective way of achieving the government’s objectives.
Their judgment said minimum pricing targeted “the health hazards of cheap alcohol and the groups most affected in a way that an increase in excise or VAT does not”.
The judges said a tax would increase prices “across the board” and not just the cheap, strong alcohol which is the focus of the legislation.
They also agreed that minimum pricing was “easier to understand and simpler to enforce”.
Minimum pricing would not allow retailers to “absorb” the cost in the way a duty rise would, they said.
What has the reaction been to the verdict?
Scotland’s health minister Shona Robison said: “This is a historic and far-reaching judgment and a landmark moment in our ambition to turn around Scotland’s troubled relationship with alcohol.
“In a ruling of global significance, the UK Supreme Court has unanimously backed our pioneering and life-saving alcohol pricing policy.”
Scotch Whisky Association chief executive Karen Betts said: “We will now look to the Scottish and UK governments to support the industry against the negative effects of trade barriers being raised in overseas markets that discriminate against Scotch Whisky as a consequence of minimum pricing, and to argue for fair competition on our behalf.”