PM Cameron wants to introduce floor price for alcohol

In an effort to clamp down on binge drinking, the Prime Minister has radical plans. Taking his lead from Scotland, whose parliament voted on 14 March 2012 to introduce a minimum price per unit of alcohol as of next year, David Cameron, on 23 March 2012, proposed the same for England and Wales.

Mr Cameron favours a minimum price of GBP 0.40p () per unit of alcohol, which equals a small glass a wine. That would affect nearly half of all alcohol on sale, some experts think.

It would certainly change the price of beer: some three out of four beers and lagers sold in supermarkets would become more costly, say those in the know. Yet wine, which is already fairly expensive, will be affected less than other drinks. For the same reason, alcohol bought in pubs and clubs will not really become more pricey.

For the minimum price to have any impact at all, many reckon it should be raised to GBP 0.50 per unit.

As soon as the proposal was announced, it was clear the implementation was likely to come under legal challenge from the drinks industry, arguing that the minimum pricing would be contrary to EU law.

But a high minimum price will have an odd effect, UK media say. Whereas other countries have raised prices through taxation, Mr Cameron’s proposal would instead deliver an estimated GBP 850 million yearly windfall to retailers and producers.

Perhaps the alcohol industry should reconsider its legal challenge.