Think tank calls for restructuring of alcohol taxes instead of minimum price

A minimum alcohol price of 45p per unit would transfer £700m from drinkers to retailers and manufacturers if rolled out across Britain, the Institute for Fiscal Studies has claimed.

The respected think tank pointed out that this “contrasts to increases in alcohol taxes, which largely result in transfers to government in the form of much needed tax revenue”.

The IFS called for alcohol taxes to be restructured so they are based on alcohol strength. This would allow the tax system “to mimic the impact of a minimum price but ensuring the additional revenues went to the government rather than firms”, it argued.

The think tank’s comments come after a group of MSPs removed plans for a minimum price of 45p per unit of alcohol from the Alcohol Bill that is currently before the Scottish Parliament. The SNP, which leads a minority government, still supports the proposal.

Middlesbrough Council was the first local authority to consult on imposing a minimum unit price, which it proposed to set at 50p.

The Association of Greater Manchester Authorities have meanwhile commissioned a report into the possibility of passing a by-law that would also set the price at 50p per unit.