UK court allows Scotland to fight drinking problem with alcohol pricing

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Scotland fans in joyous mood drinking and singing together in Trafalgar Square ahead of their football match, England vs Scotland, World Cup Qualifiers Group stage on 11th November 2016

The U.K.’s Supreme Court ruled on Wednesday that Scotland can impose minimum prices on alcohol, a case long challenged by the Scotch Whiskey Association. This marks the first time a country has established minimum pricing rules per unit of alcohol, starting at 50 pence per unit, or about 66 U.S. cents.

First Minister of Scotland 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 move was seen as necessary by many public officials in Scotland due to the country’s high alcoholism rate. According to Alcohol Focus Scotland, 1 in 4 Scots drink at “hazardous or harmful” levels, and Scots buy 20 percent more alcohol on average than their English or Welsh counterparts. The organization also reported that the maximum recommended weekly alcohol intake — 14 units — could be purchased for as little as 2.52 pounds ($3.31).

Ministers supporting the law said that a price increase on the cheapest alcohol was needed to address Scotland’s “unhealthy relationship with drink.” The price increase will be across the board, affecting not only cheap spirits but wine, ciders and beers as well.

Nicola Sturgeon tweet

The SWA has accepted the ruling, while it previously argued that it was an unfair restriction on trade and that alcoholism could be better tackled by other means.

Any extra profits from the new rules will be kept by the retailers, according to the ruling, which means they will not have to absorb the costs like they would in the case of a duty increase.

Katherine Browne, chief executive of the Institute for Alcohol Studies, said of the ruling: “Today’s Supreme Court judgment marks a momentous milestone for public health. Minimum unit pricing is a targeted measure that will tackle the cheapest alcohol that causes the most damage to harmful drinkers. … It will not affect the price of alcohol sold in pubs and restaurants and moderate drinkers will barely notice any difference.”

The Scottish Retail Consortium said in a statement: “The priority now is for the Scottish Government to provide clarity on how the scheme will work in Scotland, and to allow a fair time frame to give businesses the opportunity to prepare. We believe that will require both a reasonable implementation period, of at least six months, and clear guidance so retailers understand exactly how they can effectively implement the policy.”