News Our Awards

Supermarkets will still sell cheap beer

Supermarkets will still sell cheap beer  />		</div>
		<div class=
Featured article
Supermarkets will still sell cheap beer
Article date: 29 Mar 2012

Sir, Professor Rhodes and his colleagues argue that increased alcoholic drinks prices reduce consumption based on " wealth of international evidence".

However, the paradoxical effect of tax increases on drinks in Britain, historically consumed in relatively expensive pubs, unlike most international examples, has been to reduce the average price for drinks paid by consumers.

This is because an unbalanced system of taxes and regulations has made pubs less competitive than supermarkets, with the consequence that pubs have lost 50 per cent of their beer sales to supermarkets in the past 30 years.

The main tax disparity relates to VAT, since pubs pay at a rate of 20 per cent for food sales, whereas supermarkets pay virtually nothing, enabling them to "cross-subsidise" drinks sales. By providing tax incentives for consumers to purchase drinks in supermarkets, the Government’s alcohol strategy is fatally flawed.

Article appeared in The Times on Thursday 29 March 2012


Sat Nav

Download the Point Of Interest (POI) file for your sat nav device

Information about cookies..

Hello. We use cookies on this website to give you the best possible experience, and to give us anonymous insight into how you use this. If you continue to use the site we'll assume you're ok with this.

Find out more