Government proposals announced this week to tackle underage drinking were broadly welcomed by the alcohol industry.

Retailers and producers praised the admission by secretary of state for children, schools and families, Ed Balls, that "enforcement measures alone are not the solution".

The Youth Alcohol Action Plan includes proposals to encourage local authorities to expand test-purchase sting operations, help parents educate children about alcohol and stop young people drinking in streets and parks.

The Wine & Spirit Trade Association issued a cautious welcome to the plans. "It was a fairly balanced appraisal and we will continue to be supportive where we can," said Gavin Partington, head of communications. "We would say, however, that some of this has slightly missed the boat, especially in terms of enforcing Challenge 21. This is almost universally adopted by retailers already."

This week Morrisons announced it would be changing to a Challenge 25 policy, following Asda, which did so in February.

The planned new laws, including a new offence of persistent possession of alcohol, were also given only a partial thumbs-up.

"If the creation of an offence of persistent possession helps police tackle unruly children, then fine," said Portman Group chief executive David Poley. "However, many police forces are woefully slack at enforcing current alcohol laws. Only 10 under-18s were prosecuted for trying to buy alcohol during 2006."

Producers and retailers are not resting on their laurels, though, and many expect tougher legislation.

"I am sure the government is watching developments on alcohol and tobacco legislation in Scotland with great interest," John Taylor, head of buying, impulse, at Musgrave Retail Partners told The Grocer. "No doubt if successful it will be introduced across the UK sooner rather than later."