WSTA voices concern over local below-cost bans

A ban on below-cost sales must be applied nationally to avoid "confusion" for customers and "chaos" for businesses, the off-trade's industry body has told the government.

The Wine and Spirit Trade Association (WSTA) said it is working with the government on a "transparent and fair definition of cost".

However the group, which has today responded to the Home Office's licensing consultation, is concerned the coalition might allow a below-cost ban to be applied locally.

It is understood government officials are considering the idea of giving local councils the power to introduce a ban, either as a premises licence condition or some form of mandatory code.

Jeremy Beadles, the WSTA's chief executive, said: "It is clear that any initiative to address below cost selling must be agreed nationally if it is to work effectively.

"A system that produced different price restrictions in different areas would cause confusion for consumers and chaos for businesses."

The WSTA supports a ban on selling alcohol below the level of "duty plus VAT" - on the basis these are both consumer taxes and therefore the cost would be passed on to customers.

In its response, the WSTA has also warned some of the proposals "load the dice" against responsible businesses, when the powers to target problem premises already exist.

It has also warned against removing the right of fair hearing and appeal for licensees, which it argues would "encourage local authorities to take action without establishing a robust evidence base".

Beadles added: "Many local authorities use the existing legislation to clamp down on problem premises very effectively so let's bring all up to this standard, rather than remove the checks and balances in the Licensing Act."