Ministers get tough on shops that sell cheap alcohol with new ban
THE GOVERNMENT has announced that retailers will no longer be allowed to sell alcohol below cost price, deemed to be anything lower than duty plus VAT.
The ban will come into force on 6 April this year, and aims to tackle the trend of “deep discounting” which has led to some supermarkets selling cans of lager cheaper than bottled water.
Crime prevention minister Norman Baker said: “Banning the sale of alcohol below duty plus VAT will stop the worst examples of very cheap and harmful drink. It is part of a wide range of action we are taking, including challenging the drinks industry to play a greater role in tackling alcohol abuse.” He added that alcohol-fuelled crime costs the country around £11bn each year.
The new lowest price for beer will be 50p per can, while wine must be sold for more than £2.24 a bottle and spirits for more than £10.16. The new law will not apply to duty-free sales and drinks with an alcohol content lower than 1.2 per cent will also be exempt.
A spokesman for the British Retail Consortium said: “We have said for a number of years that retailers were not selling below cost and this will demonstrate that.”
But health activist campaigners have criticised the plans as unworkable. Eric Appleby, chief executive of Alcohol Concern said the law would only affect one per cent of alcohol sales.