Ban on below cost sales due for April 2012

By Michelle Perrett

- Last updated on GMT

Related tags Home office minister License Excise Government

Supermarkets: pile it high, selll it cheap policy under pressure
Supermarkets: pile it high, selll it cheap policy under pressure
The Government is to introduce a ban on sale of ‘below cost’ alcohol in England and Wales on 6 April 2012.

Home Office minister James Brokenshire has confirmed the move as “an important first step” which will prevent around 7,000 crimes a year.

The below-cost ban will be on alcohol sales below duty plus VAT and will enforced as a mandatory licence condition.

The Association of Licensed Multiple Retailers (ALMR) welcomed the move but warned the Government must tackle the ‘pocket money pricing’ of alcohol.

Kate Nicholls, ALMR strategic affairs director said: “We regard a ban on sales below duty plus VAT as a good starting point in addressing this issue.

“However, the current definition will do nothing to affect the vast majority of pocket-money deals currently operating in the off-trade, where alcohol is often cheaper than water.

“If the government is serious about tackling this problem, it must look to extend its definition of below-cost. In addition, further controls should be placed on the way alcohol is sold in the off-trade.

“The ALMR would like to see restrictions on bulk or wholesale volume purchases, a ban on irresponsible promotions and the use of price in advertising, and restrictions on where alcohol can be sold in-store."
Jonathan Smith of licensing solicitors Poppleston Allen said: “The Government is still struggling with what the ‘below cost’ should be of alcohol.

"The current proposal is that it should be VAT together with excise duty, although the Government is currently looking into the possibility of including the cost of production, although how that can be defined is a lawyers’ dream.”

Related topics Licensing law

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