The Government announced yesterday (February 4) that the sale of alcohol at “below cost” price, which it defines as duty plus VAT, is to be banned from April 6 2014.
This means that a 440ml can of lager or beer cannot be sold for less than 50p and a bottle of wine for less than £2.24, while the rock bottom price for vodka or other spirits will be £10.16. However, duty-free sales will be exempt from the new rules, as will low-strength beers with an alcohol by volume content of 1.2 per cent or under.
The Government has said that the ban is designed to prevent off-licences, including supermarkets, from selling alcohol at heavily discounted prices and aims to reduce excessive alcohol consumption and its associated impact on alcohol-related crime and health harm.
The timing of the ban, which will take the form of a Mandatory Code of Practice applying to all licenced premises in England and Wales, is aimed at preventing cheap booze being sold during the World Cup, as according to the Home Office, low-price offers are often associated with major sporting events.
Ministers are hoping that the move will cut down on young people “pre loading” on low-price drinks, reducing the likelihood of violence and injury, and expect savings to the NHS of around £5.3m a year, while the cost of law and order could be brought down by £3.6m. As a spin-off, it is hoped that up to £500,000 could be saved in reduced absenteeism from work.
However, campaigners remain angry that the Government shelved plans to set a minimum unit price for alcohol and to ban multi-buy offers, while the below-cost ban was dismissed as “laughable” by Alcohol Concern, which said it was almost impossible to implement and will only impact on around 1 per cent of alcohol products sold in shops.