This is an important first step in delivering the government’s commitment to ban the sale of alcohol ‘below cost’ price. This is defined as the tax drinkers pay - duty plus VAT.
Options for implementation are being considered.
Health harms and violence
Minister for crime prevention James Brokenshire said: ‘We know that pricing controls can help reduce alcohol-related violent crime and this is a crucial step in tackling the availability of cheap alcohol.
‘In nearly half of all violent incidents the offender is believed to be under the influence of alcohol. That’s why we believe it is right to tackle the worst instances of deep discounting.
‘By introducing this new measure we are sending a clear message that the government will not stand by and let drink be sold so cheaply that it leads to a greater risk of health harms or drunken violence.’
As part of the considerations of how to achieve the coalition commitment to deliver a ban on ‘below cost sales’ the Home Office carried out a review of alcohol pricing over the summer.