Drinking patterns |
Changes in strength of alcoholic drinks |
Strength of alcoholic drinks may be reduced to allow prices to be lowered, hence encouraging the availability of low-strength drinks. |
Strength of alcoholic drinks may be increased (or they may be marketed more heavily) as they become more profitable. |
Moving to licensed premises |
Moving to licensed premises (which is a safer regulated drinking environment) is encouraged as price differential is lessened. |
Drinking at licensed premises is not necessarily safer than drinking at home.Changes in drink environment reflect culture changes, not price differential. |
Inequalities |
Regressive |
Lower-income groups are less likely to buy alcohol, so this is not regressive. |
Lower-income groups may no longer be able to afford alcohol. |
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Alcohol contributes to health inequalities. |
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Prices of nonalcohol products (which are healthier) may be reduced, as supermarkets no longer use alcohol as loss leaders. |
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Household impacts |
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Households with dependent drinkers may experience greater poverty if the dependent drinkers continue to consume the same amount of alcohol. |
Economic implications |
Job changes |
MUP is unlikely to result in long-term job losses. |
MUP may cause job losses in broad range of alcohol-related industries. |
Economic impact |
MUP may reduce work absence and result in economic gains. |
MUP will hurt the economy because of its effect on alcohol-related industries. |
Government revenue |
Increased economic growth will help government revenue. |
In contrast to government raising revenue from alcohol taxation, increased revenue from MUP will go to the private sector. |
Alternatives |
Price interventions |
MUP has a greater effect on health than other price interventions. |
Ban on below-cost sales or tax increases are less trade-restrictive and result in government revenue. |
Nonprice interventions |
Many nonprice interventions (especially education) are ineffective. Other interventions should be used alongside MUP. |
Nonprice interventions, especially education, are necessary. |
Alcohol market changes |
Home brew, cross-border, and Internet sales |
MUP is unlikely to result in large changes to home brew, cross-border, or Internet sales. |
Home brew, cross-border, and Internet sales will increase because of MUP. |
Black market and illegal alcohol |
Illegal alcohol should be tackled by improved policing. |
Sales of black market and illegal alcohol are increasing and will increase further. |