Fears of a trade in cheap alcohol between England and Scotland have been reignited after Holyrood ministers vowed to press ahead with a minimum alcohol price in the face of fears the plans are about to be ditched by the Coalition Government.

Industry experts have warned of the risk of warehouses of cheap drink popping up in places like Carlisle.

The Scottish Government remained defiant as it is confident its plans, which it says will save lives, will survive a legal challenge under way at the Court of Session in Edinburgh from the Scotch whisky industry and European objections.

Health Secretary Alex Neil said: "We have a firm commitment to continue with our policy of minimum unit pricing for alcohol. Minimum unit pricing is part of a comprehensive package of measures which will see clear benefits, from fewer alcohol-related deaths and hospital admissions to a reduction in crime."

A Scottish Government spokeswoman added: "What happens at Westminster will have no impact here. We are planning to go ahead irrespective of what the UK Government does."

David Cameron said yesterday he remains committed to dealing with the problem of cheap drink.

But the Prime Minister failed to repeat his earlier backing for a minimum price. Cabinet ministers are thought instead to be considering ways to crack down on deals cutting the price of alcohol.

The Scottish Government is expecting a ruling in the next few months on UK and European industry challenges to its plans.

It is also in discussions with the European Commission, which last year – backed by five countries including France and Italy – objected to the proposals.

Critics claim minimum pricing breaches European free-trade rules by eliminating the competitive advantage enjoyed by low-cost producers.

If the Scottish Government gets its way it will become illegal to sell booze in Scotland for less than 50p per unit. A standard bottle of wine would cost at least £4.69 and one of whisky £14.

The Scotch Whisky Association has warned minimum pricing in only one part of the UK would mean a surge in cross-order and internet alcohol shopping. The organisation welcomed signs the UK Government was about to drop plans for a 45p minimum price in England.

The association's Campbell Evans said: "We are pleased the Government appears not to be going ahead. This was justified on grounds of tackling binge drinking but the Government's research shows clearly it would not address such problems."

At Westminster, Mr Cameron said the Government was still examining a consultation on the policy amid mounting speculation the move he personally championed will be abandoned

A base price of 45p per unit in England and Wales has been suggested but a number of Cabinet ministers, including Home Secretary Theresa May, have made it clear they harbour doubts.

Tory critics said minimum pricing was a "blunderbuss" policy that would penalise responsible low-income drinkers and not tackle problem drinking.

Mr Cameron was directly confronted in the Commons by Tory MP Sarah Wollaston, a former GP, who said abandoning minimum pricing would "critically undermine future efforts".

He told her: "There is a problem with deeply-discounted alcohol in supermarkets and other stores and I am absolutely determined that we will deal with this. We published proposals, we are looking at the consultation and the results to those proposals, but be in no doubt, we've got to deal with the problem of having 20p or 25p cans of lager available in supermarkets. It's got to change."