'Unholy' supermarket price war forces government response

The government has responded to concerns over an "unholy" alcohol price war among supermarkets by reiterating its intention to ban below-cost sales.

Liberal Democrat MP Greg Mulholland yesterday raised the issue in the Commons during questions on future business, claiming an "unholy price war has broken out in the supermarkets over the sale of alcohol".

He pressed Leader of the Commons Sir George Young, a cabinet minister, on when a ban on below-cost sales would be introduced - and if it will "cover such irresponsible promotions" which "damage the pub".

Young responded: "I can confirm that the government will shortly be introducing relevant legislation which address the issues you have just touched on, setting a framework where licensing authorities are properly able to address the pressures caused by excessive late-night drinking in the 24-hour licensing culture.

"It is also our policy to ban the sale of alcohol below-cost in supermarkets."

However, in a document outlining the Home Office's plans, released earlier this month, it said a ban would only be introduced "if necessary" and was being delayed until May 2012.

Other government plans to shake-up the licensing regime - which are predominantly on-trade focussed - are due to start their journey through Parliament next month and expected to be law by next summer.

Mulholland later released a statement, saying: "I was pleased with the response I got from the government and hope they will act quickly to stop below cost alcohol sales, which will undoubtedly benefit the pub industry and help put an end to the binge drinking culture."