Below-cost ban delayed until May 2012

A ban on below-cost sales of alcohol has been delayed until May 2012 - and will now only be introduced "if necessary".

The Home Office has today published a business plan for the next four years - and the timetable for the shake-up of the licensing regime indicates the ban will not be part of the first raft of changes.

The controversial regime overhaul - including giving police and councils more power and allowing them to introduce a levy for late-opening pubs- will be part of the Police Reform and Social Responsibility Bill starting in Parliament next month. The changes are expected to become law by next summer.

But the ban on below-cost sales, which was originally meant to be part of this Bill and was a key Tory election pledge, will not be included.

Instead the Home Office business plan states that development of the plans to include an "option" to ban below-cost sales will not be completed until April 2011.

The plan states: "Pricing options must be enforceable, compatible with EU trade law and easily implemented by business."

This statement will add to speculation the government will not be able to enforce a ban due to problems with European competition law.

Laws to allow the government to bring in the changes would be introduced in May 2012, the plan says, but only "if necessary".

Menawhile, the Treasury's business plan states a review of alcohol tax is due to end next March.

However industry sources suggest some form of announcement will be made on the review before Christmas.