Minimum pricing - 'voluntary' in Newcastle?

05 Sep
2013

Minimum pricing….always a controversial subject. The Scottish Government seems intent on pursuing its implementation whereas the British Government seems to have shelved the idea because of the difficulties perceived in pursuing it, not least with European law and its suggestion of artificial and anti-competitive price fixing!

However, news reaches us of one Council said to be “encouraging” a minimum price per unit of 50p for all licensed premises.

The recently updated licensing policy for Newcastle City Council does make reference to minimum pricing in the following way:

The Licensing Authority “would therefore like to encourage all licensed premises to apply a minimum unit price of 50p to all alcohol products sold under their premises licence”. Quite what the ‘encouragement’ consists of we don’t know! 

However, what we do know is that “where there is evidence that the licensing objectives are being compromised or are likely to be compromised, the Licensing Authority will consider imposing controls” including “the requirement to charge a minimum cost per drink as part of a package of measures to deal with problems.” i.e. where premises are found to be selling alcohol below 50p per unit and “there are problems associated with the premises that are negatively impacting on the licensing objectives”. In those circumstances a responsible authority may bring Review proceedings. Following the Review, the Licensing Authority may then decide to impose a condition in relation to the pricing of alcohol in order to uphold the licensing objectives.

We understand a small number of premises now have this on their licence by agreement but it will be interesting to see what happens if and when the Licensing Authority choose to impose such a condition and whether it will then stand up to the scrutiny of the higher courts!

Law correct at the date of publication.
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