SGF warn that increasing MUP will impact struggling businesses and communities

The Scottish Grocers’ Federation has warned that increased Minimum Unit Pricing (MUP) could deepen the cost-of-living crisis, impacting local businesses and hitting struggling households the hardest.  

This afternoon, the Deputy First Minister announced that MUP will increase from 50 pence to 65 pence, from 30th September 2024. The current price of 50p will remain in place until 30th Sept. No future date has been set for the price to be reviewed again in the coming years.

SGF has stated that it will continue to engage with the Scottish Government over the coming months. Despite calling for a twelve-month implementation period, SGF welcome the nine-month lead time before prices change.

In 2018, SGF worked with the Scottish Government to publish a Retailers Guide on MUP and host an easy to access online MUP Calculator for retailers to use. In the coming months, SGF hopes to repeat this process for the new price of 65p.

SGF Chief Exec, Dr Pete Cheema OBE, said: “SGF believes in responsible retailing, and we support the Scottish Government’s aims to reduce alcohol harm. That is why we worked with ministers during the launch of MUP in 2018.

“However, it is clear that the analysis carried out during the covid pandemic and a swathe of changes to hospitality and drinking habits in recent years, has not been sufficient to justify increasing the MUP.

“Many convenience retailers are working flat-out just to keep the lights on, and doors open. It is often the case that convenience stores are at the very heart of their communities. Providing essential services such as post offices, bill payment services and access to cash.

“Continuing to provide a ‘full basket’ for customers means that if one product category has limited value, then income needs to come from other items. Restrictions and higher prices inevitably come at a greater cost to doing business, putting more pressure on budgets and struggling household incomes.

“Ministers didn’t listen to us on DRS, they didn’t listen to us on NDR, and now they are not listening to us on MUP.”