Alcohol price tops list in 'rip-off' UK
Alcoholic drinks in Britain are up to 70 per cent more expensive than those in European countries, according to a new survey.
Prices for all sorts of goods are being harmonised on the continent in preparation for the introduction of the euro next year - but British prices will not change, even though they are higher than eurozone countries.
The process will widen the gulf between average costs in Britain and other European countries and could increase the amount of illegal alcohol being imported into the UK.
Expensive countries such as Germany, which will use the euro next year, will be forced to cut prices in order to remain competitive, but Britain, which has not yet signed up to the single currency, will not.
The latest survey was commissioned by investment bank Dresdner Kleinwort Wasserstein.
It discovered that while goods such as clothes, electronics and CDs cost 16 per cent more in Britain, alcoholic drinks topped the scale at 70 per cent more than the European average.
The news that prices are becoming harmonised across Europe comes shortly after reports that plans are being drawn up in Brussels that could force Britain to slash its beer and wine prices.
The European Commission wants duty rates to be harmonised, which would mean lowering rates in high-tax countries such as Britain and Sweden.
The UK Government is expected to fight any proposals for harmonisation of duty.
Related stories:
UK booze prices could be slashed (5 November 2001)
