Having a minimum price for alcohol impacts on abuse

According to a report published in BMJ (British Medical Journal), alcohol consumption, hospitalizations, and deaths will be considerably reduced as a result of UK Government plans to impose a minimum price of 40p per unit of alcohol. John Appleby, Chief Economist at the King's Fund, states that the plans will reduce alcohol consumption by 2.4%, prevent 38,900 hospitalizations and result in a 1,149 reduction in deaths. In addition, he notes that these effects would more than double by introducing a 50p minimum price, and that an economic recession has even greater "sobering" effects. In order to determine the demand for alcohol, price and disposable income are vital. Between 1964 and 2004, spending on alcohol in the UK has increased over two fold. The researchers note that these factors can be used to form the basis of an alcohol "affordability index." Since 1980, spending on alcohol decreased during brief periods, mainly as a result of lower disposable incomes and economic recessions. Currently, the cost of alcohol is considerably less than three decades ago. However, spending on alcohol has decrease by 17% (back to 1996 levels) over the last five years. According to the researchers. this decrease is due in part to the recent recession, but also partly precedes it. Furthermore, there has been a significant reduction in binge drinking among young men in recent years - accelerating a generally downward trend since 1998. Approximately £42.1 billion was spent on alcohol by UK households in 2010, and those aged 18+ spent on average around £17 on alcohol per week. According to hospital admission data, these figures indicate a problem with drinking in the UK. In England, the researchers found that between 2002 and 2010, alcohol-related hospital admissions doubled to approximately 265,000. Alcohol-related deaths also increased between 2001 and 2008 - even though in 2009, they slightly decreased to 6,584. Applybe concludes: "Whether or not this all constitutes a significant problem now - given lags in health and other impacts of drinking and recent falls in consumption - the impact of various price and non-price interventions to reduce drinking show significant impacts."