Retailers will be banned from selling alcohol below the rate of duty plus VAT.
There is growing concern over how cheaply some alcoholic drinks are being sold and about the link between alcohol and crime and disorder. In many cases this is a result of 'pre-loading' (drinking at home) in preparation for a night out.
We intend to introduce a new measure which would prevent retailers from selling a 1 litre bottle of vodka (37.5 per cent abv) for less than £10.71 and a 440ml can of lager (4.2 per cent abv) for less than 38p.
As part of our consideration of how to implement the ban on below cost sales, the Home Office and Treasury have carried out respective reviews of alcohol pricing and taxation.
These reviews found that pricing controls can be an effective way of both improving public health and reducing violent crime.
- read the report summarising the findings from the Home Office review of alcohol pricing
- read the Treasury review of alcohol taxation
In early 2010, the previous government commissioned three pieces of research on alcohol pricing. This research has been considered as part of the review of alcohol pricing.