UK’s alcohol problem could trigger further business regulation

The impact of recent increases in minimum unit pricing (MUP) for alcohol in Scotland is likely to be monitored for signs of measurable health benefits by policymakers across the UK, as this could influence whether further regulatory intervention follows.

Alcohol trends

According to the latest statistics available on the topic from the Office of National Statistics (ONS), in 2022, there were 10,048 deaths from alcohol-specific causes registered in the UK, the highest number on record. The death rate increased by 4.2% on 2021 and is up almost 33% on 2019.

The highest alcohol-related death rates across the UK were recorded in Scotland and Northern Ireland, where the rates are 22.6 and 19.5 deaths per 100,000 people, respectively. The UK average is 16.6 deaths per 100,000 people.

The death rate varies significantly across different areas of England – from 21.8 deaths per 100,000 in the north east, to 11 deaths per 100,000 in the east.

In a report published last year, a parliamentary committee said it was “concerned” that the Department for Health and Social Care “is not taking alcohol harm sufficiently seriously”, adding that it is “unacceptable that deaths from alcohol rose by 89% in the last two decades”. The MPs criticised the absence of any alcohol-focused strategy for England since 2012.

The Institute of Alcohol Studies has estimated that alcohol harm costs England £27.4 billion a year, with the specific cost to the NHS in England estimated at £4.9 billion. The UK Treasury collects a little over £4 billion a year in alcohol duty.

Existing regulation – MUP

The regulatory picture relating to alcohol – and MUP specifically – varies across the UK.

Scotland

MUP for alcohol was implemented in Scotland in May 2018, with a 50p per unit minimum rate set in the Alcohol (Minimum Price per Unit) (Scotland) Order 2018. The rate was raised to 65p per unit as of 30 September 2024.

A report published by the Scottish government on the operation and effect of the MUP since its implementation cited some evidence that the MUP has had an overall positive impact on health. It is estimated that the scheme has resulted in a reduction in alcohol-related health inequalities as well as 13.4% fewer deaths related to alcohol in Scotland, compared to England. It also led to a reduction in alcohol sales.

Despite this, death caused by alcohol remains high in Scotland with the highest number recorded in 15 years, in 2023.

A study by the University of Stirling published in June suggested that the implementation of MUP has had no negative impact on the sale of alcohol in pubs, clubs and restaurants. The research suggested that the measure is the most effective way to reduce overconsumption of alcohol whilst minimising the impact on the hospitality industry.

Concerns raised with MUP have, however, centred on the increase seen in retail crime and the added costs it has brought for consumers.

Wales

Wales introduced MUP in March 2020. Like Scotland, however, the data shows that MUP has not reduced alcohol-related deaths in Wales and there are questions over whether changes in drinking habits were influenced more by the impact of Covid-19 than the introduction of MUP – and whether they have had any impact on heavy drinkers targeted by the policy, at all.

MUP is due to end in March 2026 unless the Welsh government makes regulations to extend it.

Northern Ireland

Calls have been made for MUP to be introduced in Northern Ireland due to an increase in alcohol-related illnesses and deaths. Northern Ireland had the second highest number of alcohol-specific related deaths in the UK in 2022, proportionally.

Implementation of MUP in Northern Ireland is supported by health minister Mike Nesbitt, who, according to the BBC, is seeking to convince other law makers to back its introduction. Nesbitt was recently reported as saying that “there are indications that setting a minimum unit price could have significant positive benefits for reducing the harm alcohol can cause, reducing the impact on our health service, and reducing alcohol related deaths”.

England

With Scotland and Wales already having MUP and Northern Ireland proposing to follow, England has become an outlier.

There has been no national alcohol strategy for England since 2012, and with alcohol-related deaths having increased by a third in England since 2019, there is growing pressure on policymakers to adopt a strategic approach to prevent excess consumption.

Other ‘sweetspot’ policies that could follow

MUP in Scotland was described by the University of Stirling researchers as a likely example of a “sweetspot policy option” because of its potential to address alcohol-related harms without significantly impacting on the hospitality industry. The study cited further four other policy options that it said could also be explored as potential ‘sweetspot’ interventions and offer some clues to businesses as to what further regulation could follow – in Scotland and in the rest of the UK.

The options include:

• other alcohol pricing and taxation measures;
• regulation of online sales, including rapid delivery services;
• encouraging the growth of food or arts focused venues using the local alcohol licensing system, rather than those primarily focused on selling alcohol;
• violence reduction interventions focused on late-night venues, including changes in serving or closing times.

In Scotland, the Scottish government is also believed to be considering further restrictions on the marketing and advertisement of alcohol. This could include banning advertisements at sporting events, on billboards, and on TV.

It remains to be seen whether the regulatory picture will remain patchwork across the UK or whether the rising alcohol-related death rates and estimated costs of alcohol harm prompt more unified action and broader measures by policymakers to reduce alcohol consumption in the UK.