Scottish consumers will no longer be able to buy a bottle of red wine for less than £6.09 or a bottle of whiskey for less than £18.20 from October, after the minimum alcohol price increased by 30%.
Shona Robison, the deputy prime minister, confirmed a Guardian story earlier this week that the minimum unit price (MUP) will rise from 50 cents per unit to 65 cents to keep pace with inflation and ensure prices remain relatively are held high.
The new prices take effect on September 30. It means a basic bottle of whiskey will rise from £14 to £18.20; a can of lager costs at least £1.30; and a standard bottle of vodka £7.06.
“Alcohol harm remains a major problem in Scotland,” Robison said. “It continues to contribute to worsening health outcomes.” She said this was especially the case for men in deprived areas.
Alcohol-related death rates have risen in recent years, partly due to rising consumption during the Covid crisis.
Robison told MSPs that while the Government already spends £112 million a year on alcohol and drug treatment units, ministers are considering introducing a new public health tax on shops so that the excess profits they make from MUP can be clawed back.
Strathclyde University’s Allander Institute’s Fraser estimates that retailers have made a total of around £30 million a year from MUP as they keep the difference between the higher price paid for drinks and the wholesale price of the product.
Scottish Labor and public health charities argue that the case for a levy is now even stronger: a minimum price of 65p means higher unearned profits. Labor said on Thursday that proceeds from the levy should be spent on alcohol treatment and recovery projects.
Robison said businesses and health experts were being consulted on the possibility, with a decision due before the Scottish Budget later this year. Scotland had a public health levy on major retailers between 2012 and 2015, which raised £95 million.
Robison rejected conservative arguments that the increase unfairly penalized ordinary consumers during a cost-of-living crisis. Expert analysis suggested that minimum prices had reduced deaths from alcohol abuse by 13.4% annually, compared with the likely death rate had no MUP been introduced, Robison said.
The Scottish Retail Consortium said it welcomed the higher unit price but was angry at the prospect of an “unproven and unreasonable” new levy.
“Any tax increase advocated is nothing more than a thinly veiled cash grab at the expense of a sector already under enormous pressure,” said Ewan MacDonald-Russell, deputy chief executive.