Top MP: ban on below-cost selling vital

Alcohol-related problems will only be solved if the government takes action against supermarkets selling alcohol below-cost, a senior Labour MP has warned.

During a debate in the Commons, Keith Vaz, chairman of the Home Affairs committee, said a minimum price was needed to stop supermarkets selling alcohol "too cheaply".

"If we address one sector—the pubs and clubs—but do not deal with the supermarkets, which are selling alcohol as a loss leader, we will not solve the problem of alcohol-related crime," he added.

However responding to Vaz, Home Secretary Jacqui Smith said despite there being "some very useful evidence" on minimum pricing from Sheffield University the government would not take immediate action.

"Given the current economic climate, it is important that we do more work and think carefully about how and whether that work would make an impact on the harm that we would want it to impact upon, but in a way that did not disproportionately affect others," Smith said. "However, the issue is certainly a live one."

The debate followed the Queen's Speech which unveiled plans to introduce a mandatory code of practice for the drinks industry - including a crackdown on cheap drink promotions.

Shadow Tory licensing minister Tobias Ellwood later highlighted that the cost of a pint in a pub was now seven times more than a supermarket - compared to it being double when Labour came to power in 1997.

He added: "Fortunately, VAT is decreasing, but duties are increasing to compensate and when VAT increases again, duties will remain where they are," he said. "How does that help traditional pubs to continue with responsible drinking?"

Smith admitted she not an "expert" on the price of beer and that Jack Straw was advising her on the issue, but she would not be deciding herself on the tax issue.