Although those price rises are rather fierce.
The Scottish government’s 50p minimum unit price for alcohol, which comes into force on 1 May 2018, will have a dramatic impact on prices, according to the Institute for Fiscal Studies.
Some cider products will rise in price by as much as 90%, according to the IFS briefing note, which also found prices would increase across all alcohol types. The price of a 20 x 440ml pack of Strongbow would double, while a bottle of Tesco cream sherry would increase by 20%.
The minimum pricing policy, which comes into force after a five-year legal battle between the Scottish government and the Scotch Whisky Association, is intended to stop the sale of cut-price, high-alcohol drinks such as cider.
The IFS found that almost 70% of the alcohol units bought in supermarkets and off-licences across the UK between October 2015 and September 2016 were priced below 50p per unit. With a 50p minimum unit price, the cost of these products would increase on average by at least 35%, with lager and cider most affected.
I still don’t understand why they’re doing it this way. Why not change the duty levels? Why give the rise in margins to the retailers/manufacturers?