Scottish minimum pricing system could move to England

A licensing strategy designed to break the legal deadlock over irresponsible drinks promotions is set to spread across Scotland, and could be adapted...

A licensing strategy designed to break the legal deadlock over irresponsible drinks promotions is set to spread across Scotland, and could be adapted to work under English licensing law.

Since last year, Perth & Kinross licensing board has run a minimum price system, which in practice requires all licensees to sell spirits at £1 per measure or more, and draught and bottled beers at £1.50 or more.

The minimum price agreement is now a condition of all late licences in the towns.

The move was the result of a task force set up to prevent Perth falling victim to the heavy drinks discounting, and resulting anti-social behaviour, which has blighted the late-night culture of neighbouring cities such as Dundee.

The task force included licensing chiefs, the town's Safer Trading Forum, and trade representatives including Paul Smith, chief executive of bar and club operator Castle Leisure.

Mr Smith used his legal training to draft a condition which did not breach either Scots licensing law or competition rules outlawing price fixing.

The Bar Entertainment and Dance Association (BEDA), which Mr Smith vice chairs, then paid for a QC to confirm the condition was legal.

"It's working in Perth," said Mr Smith. "There's no doubt without the condition we would have had the same problems other towns have seen."

With a delay of the publication of the Nicholson report, which is reviewing all licensing law and practice in Scotland, other Scottish licensing boards are considering adopting the measure.

Scottish licensing is a separate system from licensing in England, Wales and Northern Ireland but Jeremy Allen (pictured)​, of BEDA's legal representatives Poppleston Allen, said he also expected some English local authorities to use the approach once the new licensing regime comes into effect.

A pricing condition applied by a legal authority would not constitute a cartel, he said.

"But," Mr Allen continued, "I don't think anyone will try it while we're still in the death throes of the old public entertainment licence."

However, guidance issued with the Licensing Act indicates conditions on late licenses would be legal "as long as they are applied fairly to all venues of a certain type".

Related articles:

Scotland to face licensing reform under Nicholson Committee proposals (30 June 2003)

Reform in Scotland is put on hold (11 June 2003)

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