Minimum Unit Pricing (MUP) Continuation and future pricing: Island Communities Impact Assessment

Step One –Understanding Objectives:

The policy aim of MUP is to reduce health harms caused by alcohol consumption by setting a floor price below which alcohol cannot be sold. In particular, it targets a reduction in consumption of alcohol that is considered cheap, relative to its strength. It aims to reduce both the consumption of alcohol at population level and, in particular, among those who drink at hazardous^[1] and harmful^[2] levels. In doing so, it aims to reduce alcohol related health harms among hazardous and harmful drinkers, and contribute to reducing harm at a whole population level.

People who drink at hazardous and harmful levels in lower socio-economic groups suffer greater harms than those who drink at these levels in higher socio-economic groups due to the impact of multiple drivers of health inequality. MUP is also intended to address alcohol related health inequalities by reducing consumption, and therefore harm, among hazardous and harmful drinkers as a whole, having a positive effect on health inequalities given the greater harms people in lower socio-economic groups experience in relation to alcohol.

The policy was implemented on 1 May 2018 at a level of 50 pence per unit (ppu) of alcohol^[3]. The legislation, the Alcohol (Minimum Pricing) (Scotland) Act 2012^[4], contains a ‘sunset clause’ which means further legislation is required to continue the policy, as well as setting the level going forward.

A public consultation was held in late 2023 on the proposal to continue the effect of MUP, and amend the level of MUP, the consultation analysis was published 8^th February 2024.^[5]

The Scottish Government set out, in a statement to Parliament on 8 February given by the Deputy First Minister, that it would lay secondary legislation seeking the agreement of Parliament to continue Minimum Unit Pricing and to set the price at 65 pence per unit, to take effect from 30 September 2024.

The Islands (Scotland) Act 2018^[6] defines an island community as a community which consists of two or more individuals, all of whom permanently inhabit an island (whether or not the same island), and is based on common interest, identity or geography (including in relation to any uninhabited islands whose natural or cultural environment and terrestrial, marine and associated ecosystems and history contribute to the natural or cultural heritage or economy of an inhabited island).

The intended outcome of MUP is to reduce alcohol-related harms at a population level and to target hazardous and harmful drinkers who disproportionately suffer the greatest alcohol-related harms. This assessment considers whether there is a significant differential effect on island communities of the decision to continue MUP and to increase the price to 65ppu, compared to the effects on mainland communities.