Minimum pricing 'to cost £184m' – report

20 August, 2010

Minimum pricing in Scotland will cost consumers £184 million a year and hit the lowest income groups hardest, according to a report by the Centre for Economics & Business Research.

The research body’s report – commissioned by SAB Miller – said that a 40p per unit minimum price on alcohol would see consumers paying an extra £132 million for alcohol, the equivalent of £58 per household per year.

Taking into account the “lost utility” – the satisfaction gained from drinking – and benefits of improved health, the CEBR said the net impact would be £184 million on individual consumers.

The report concludes: “It is clear that the introduction of this policy would lead to a number of unintended consequences that have yet to be properly considered or valued by the Scottish government.”

It said there would be additional administrative costs to retailers from implementing and continually checking price levels.




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Richard Hemming MW: beware inverse snobbery

Few things can bring communal pleasure so intimately as wine. Apart from a hot tub, perhaps. Sport can trigger mass jubilation, film gives us shared empathy, but wine has a nigh-unique ability to bestow conviviality among us through a shared bottle – which makes it especially galling that we spend so much time divided over it.

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