Scots are facing a "hidden" alcohol tax that increases their annual spending on alcoholic beverages by approximately £100, according to new research. The price of alcohol in Scottish shops, supermarkets, and off-licences has risen by 8% in the past year, reaching a record high of 78 pence per unit. This contrasts with a 3% price increase in England and Wales, where alcohol now costs 69 pence per unit.
This price disparity means that individuals in Scotland are spending an average of £96.87 more per year on alcohol than their counterparts in England and Wales. The SNP government in Scotland implemented a law in September 2024 establishing a minimum legal price of 65 pence per unit for alcohol.
Scottish Conservative finance spokesman Craig Hoy criticized the policy, stating that the SNP's "booze tax" is another burden on taxpayers and businesses. He argued that Scots should not have to pay more for a relaxing drink after a day's work than people in England, attributing the situation to the "Nationalists' anti-business agenda."
Retailers also point to a challenging business environment in Scotland as a factor contributing to higher alcohol prices. They cite increased business rates, more red tape, higher transport costs, and greater energy prices compared to other parts of the UK. Luke McGarty, head of policy and public affairs for the Scottish Grocers' Federation, explained that convenience retailers are facing numerous new government regulations and restrictions. He added that most local shops have reached a point where they can no longer absorb these additional costs, leading to price increases passed on to consumers who are also managing household budgets. McGarty noted that alcohol, as a non-essential and profitable item, is subject to these price adjustments to help businesses cover their operating expenses.
In response, the SNP has blamed the UK government for the pressures faced by small businesses in Scotland, with Economy Secretary Stephen Flynn citing decisions such as the increase in employers' national insurance contributions as damaging.
These findings on Scotland's higher alcohol prices were highlighted in a recent report by Public Health Scotland (PHS). The report indicated that the off-sale price of alcohol in England and Wales rose from 67 pence per unit in 2024 to 69 pence in 2025, a 2.99% increase. In Scotland, the price climbed from 72 pence to 78 pence during the same period, an 8.3% rise.
The PHS report also revealed that despite higher prices, adults in Scotland still consume more alcohol than those in England and Wales. On average, each adult in Scotland purchases 8.6 litres of pure alcohol annually, compared to 7.8 litres in England and Wales. When non-drinkers are excluded, the average Scottish drinker consumes 20.7 units of alcohol per week, significantly exceeding the UK Chief Medical Officers' recommended maximum of 14 units per week.