Coalition threatens to steal SNP's thunder over alcohol pricing

Published on Thursday 20 May 2010 23:09

SNP ministers are under pressure to drop their plans to introduce minimum alcohol pricing in Scotland, as the new government announces a package of measures to tackle the problems of the booze culture.

• Nicolas Sarkozy, the president of France, meets David Cameron ahead of talks in Paris yesterday. Picture: Getty

A ban on the controversial practice of "loss-leading" in supermarkets and a review of alcohol pricing and taxation are two of the highlights in a 34-page Conservative/Liberal Democrat coalition document published yesterday. Both measures are likely to apply in Scotland.

The document, a detailed five-year blueprint for government unveiled by Prime Minister David Cameron, was described as a compromise which will strengthen Britain.

But critics pointed out that there are almost 40 policy areas being reviewed or going before a commission as the two parties try to avoid conflicts or bury areas of difference.

Mr Cameron said it was "churlish" to concentrate on the reviews when there were many more areas of agreement in the document.

Deputy Prime Minister Nick Clegg said: "Compromises have, of course, been made on both sides, but those compromises have strengthened, not weakened, the final result. From different political traditions – conservatism and liberalism – we've come together to forge a single programme drawing on the strengths and traditions of both of our parties."

However, the government is keen to press ahead with measures to curb binge drinking by halting promotions. Supermarkets, for instance, are preparing summer promotions of cheap lager as part of their football World Cup sales campaigns. Other examples include heavy discounting of bulk wine sales or "buy two, get one free" offers. Retailers say irresponsible drinking is a question of culture, rather than price.

Among the measures not included is the controversial Tory proposal to scrap the Human Rights Act and replace it with a Bill of Rights, which has become a totem issue for right-wing Conservative back-benchers who feel marginalised by the coalition deal.

Chancellor George Osborne pointed out that the coalition government's first priority was to tackle the budget deficit and this took priority over the other pledges in the document.

The need to tackle the deficit has also appeared to have delayed any plans to change funding distribution by switching the current Barnett Formula with a needs-based system. This could have reduced Scottish funding, but will not be done before the deficit is tackled.

Already, though, the new government appears to be bracing itself for a fight with the unions with plans to part-privatise Royal Mail and tackle public sector pay and pensions. Similar plans were dropped by the Labour government because of a threatened rebellion by back-benchers.

The document also guarantees that Scotland will be included in the new-high speed rail network and broadband access for remote areas.

Meanwhile, thousands of jobs may be created with the pledge to build an electricity grid to support offshore wind farms. It is likely this will be based on plans to put in a subsea line from Peterhead to Middlesbrough down the east coast. It does not affect the already agreed Beauly-Denny line.

The Scotsman understands that people in the Highlands are also likely to benefit with a pilot project to look at how fuel costs can be reduced for those living in remote rural areas.

It appears that 180 million of Scotland's money held in the fossil fuel levy will finally be released for use by the Scottish Government for renewable projects.

Among the political reforms is a promise to implement the Calman Commission proposals on strengthening devolution, including giving MSPs greater control over income tax raised north of the Border.

After launching the document yesterday, Mr Cameron flew to France for his first international engagement as Prime Minister. After talks with French president Nicolas Sarkozy, Mr Cameron reiterated his "fundamental" concerns about the euro and determination to keep the UK out of it.

He refused to pledge UK money to shore up the ailing currency, saying: "Obviously, as we are outside the eurozone, it is not the same call on us in terms of financial support – it shouldn't be, because we are not members of the euro."

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