AGMA Executive to consider draft bylaw for minimum alcohol pricing

The Executive of the Association of Greater Manchester Authorities will this Friday (26 November) consider a draft bylaw designed to introduce minimum pricing for sales of alcohol.

The proposed bylaw – which was drafted by the legal department at Stockport Council – would see:

• A ban on the public sale of alcohol at a price less than 50p per unit. This price would be reviewed annually, taking into account inflation “and all other reasonable financial factors that are appropriate at the time”
• A ban on loyalty, bonus, reward, discount or any other special offer “that shall allow alcohol to be purchased following the accrual and production of any recognised credit note, token or receipt for any such scheme”
• Offenders made liable upon conviction to a fine not exceeding level 2 on the standard scale (£500).

“The precise wording [of the bylaw] will be a matter for individual local authorities but it is assumed a degree of consistency would be important,” according to a Task and Finish Group set up by Agma to look into the issue.

The group said in its interim report that a minimum unit price of 50p would reduce alcohol-related hospital admissions by 4,482 per annum. The estimated saving to health services would also be in the region of £1.375bn per annum, “a significant saving to the public sector expenditure in Greater Manchester”.

However, it also warned that there may be practical problems with implementing minimum pricing over the Greater Manchester area, citing in particular the possibility of residents travelling out-of-borough to purchase cheaper alcohol.

The group said it would gather more evidence on the issue. However, it concluded that this provided a strong argument for “continuing to explore opportunities at a regional and national level”.

It added: “Although in some instances Greater Manchester residents may travel out of the city conurbation it is likely that the relatively small price increase for the vast majority of drinkers would not provide a strong enough driver to travel in this way (eg from central Manchester into Cheshire).”

The report pointed out that this would be case for those drinkers likely to be most affected by a minimum unit price, such as underage drinkers without car transport.

Another potential issue with the bylaw is enforcement. The group said trading standards officers were seen as the most logical choice for enforcing the bylaw, but lead officers had highlighted their concern over the resources available to carry out any new role. Consideration has therefore been given to a wider scope of existing partnership enforcement roles, to assist TSOs.

The report said the draft bylaw should – in a bid to diminish the risk of a potential legal challenge from alcohol manufacturers and to define a proportionate fixed penalty notice  – replicate the existing fine and licensing review prosecution structure attributable to the offence of persistently selling alcohol to underage persons under s.147A of the Licensing Act 2003.

“In this way, not only would the offence of under-priced alcohol sales be supported by an ‘on-the-spot’ fixed penalty notice fine, but two FPNs within a consecutive three month period, ‘two strikes and you’re out’, would automatically instigate a summary review (s.53a Licensing Act 2003) with a LA Licensing Committee Panel, potentially resulting in premises licence suspension/revocation.”

The report continued: “The Task and Finish Group consider further work is required to understand the prioritisation of this work on existing council regulatory services capacity at a time of constraint, and in recognition of the fact that local bylaw implementation will not necessarily command additional enforcement resource.”

Additional work is also needed in relation to who should receive the ‘dividend’ of a minimum price. In evidence to the Scottish Parliament committees that looked at the issue as part of deliberations on the Alcohol etc (Scotland) Bill – minimum pricing was recently voted down – Asda warned that drinks industry profits would be boosted by £130m a year.

“This is a direct transfer from consumers to the drinks industry which does not deliver a single additional penny to the public purse to invest in tackling alcohol misuse,” the supermarket giant said.

Highlighting the fact that AGMA and the Greater Manchester Health Commission’s work on minimum pricing had provoked a national debate, the group suggested it was sensible for AGMA to try and establish a broader based coalition of support “if the objective is to prompt debate on potential national legislation”.

It pointed out that the legislative context for minimum pricing was changing rapidly, for example through:

• Potential changes to bylaw arrangements contained in the forthcoming Localism Bill – reducing the number of bylaws and to simplify the process for setting up new bylaws
• Implications of the Police and Security Act: this will include power to restrict the sale and supply of alcohol
• Implications of the Licensing Act Review: relevant potential changes include the adding of public health to the Licensing Act and the proposed night time levy
• Implications of the Treasury Review of Alcohol Taxation and Pricing.

The group asked AGMA’s executive to endorse its proposal for further work to be carried out, including in relation to understanding and balancing the enforcement implications against the benefits of the proposal.