The Scottish government has announced that the minimum price per unit of alcohol will increase from 50 pence to 65 pence from 30 September 2024.
The government says a price increase is required to counteract the effects of inflation. No future date has been set for the price to be reviewed again in the coming years.
Deputy First Minister Shona Robison said: “We believe the proposals, which are supported by Scotland’s Chief Medical Officer, strike a reasonable balance between public health benefits and any effects on the alcoholic drinks market and impact on consumers. Evidence suggests there has not been a significant impact on business and industry as a whole.
“Alongside MUP, we will continue to invest in treatment and a wide range of other measures, including funding for Alcohol and Drug Partnerships which rose to £112m in 2023-24.”
In response, the SGF has warned that the increase could deepen the cost-of-living crisis, impacting local businesses and hitting struggling households the hardest.
SGF welcomed the nine-month lead time before prices change, despite calling for a 12-month implementation period, and stated that it will continue to engage with the Scottish government over the coming months.
The trade body worked with the Scottish government to publish a Retailers Guide on MUP and host an easy to access online MUP Calculator for retailers to use in 2018. In the coming months, SGF hopes to repeat this process for the new price of 65p.
Chief Executive, Pete Cheema, said: “SGF believes in responsible retailing, and we support the Scottish government’s aims to reduce alcohol harm. That is why we worked with ministers during the launch of MUP in 2018.
“However, it is clear that the analysis carried out during the covid pandemic and a swathe of changes to hospitality and drinking habits in recent years, has not been sufficient to justify increasing the MUP.
“Many convenience retailers are working flat-out just to keep the lights on, and doors open. It is often the case that convenience stores are at the very heart of their communities. Providing essential services such as post offices, bill payment services and access to cash.
“Continuing to provide a ‘full basket’ for customers means that if one product category has limited value, then income needs to come from other items. Restrictions and higher prices inevitably come at a greater cost to doing business, putting more pressure on budgets and struggling household incomes.
“Ministers didn’t listen to us on DRS, they didn’t listen to us on NDR, and now they are not listening to us on MUP.”
The Scottish Licensed Trade Association (SLTA), a long-time supporter of minimum unit pricing for alcohol, has welcomed the announcement.
Colin Wilkinson, SLTA managing director, commented: “Scotland has long had a challenging relationship with alcohol and the link between low prices and increased consumption is clear. The sale of cheap alcohol has been a major factor in many people developing alcohol-related problems so a proportionate increase in MUP make absolute sense.”
He added: “The 50p level was approved in the Scottish Parliament nearly 12 years ago so we believe that with rises in inflation since then, it was time to increase MUP from 30 September.”
