Alcohol: Minimum Pricing

Baroness Hollins Excerpts

Wednesday 24th July 2013 Lords Chamber

[Lord Taylor of Holbeach]

My Lords, the Government are not ignoring the evidence; in fact a study published recently by Sheffield University is very interesting in this subject area. That is why the Government have introduced the whole business of duty plus VAT—so that, for example, low-alcohol beer cannot be sold below 40p a can and strong lager below £1.15. This has been a long-standing problem which Governments of all types have not been prepared to deal with. This Government have a strategy now to deal with it and I hope that it has the support of the House.

[Baroness Hollins]

My Lords, my interest is as chair of the Board of Science at the British Medical Association. I understand that research commissioned by the Department of Health shows that this policy on its own will not have any impact. How much of an increase in price does this new policy represent? I estimate that the policy will mean a minimum shop price of 21p per unit for beer and 28p for spirits—considerably less than the 45p minimum unit price previously being considered.

[Lord Taylor of Holbeach]

My Lords, I have some figures that might inform the House. In 2008—the latest figures that I have available—retailers sold 220 million litres of alcohol below cost. Six out of seven supermarkets sell alcohol below cost. That is what we are tackling with duty plus VAT. It is part of a combination of strategies to reduce alcohol and binge drinking in this country.