Industry bodies square up on below-cost alcohol

Seven trade associations have presented a joint submission to the Home Office following the Government’s early proposals on the issue, previously reported by Peach Report. It calls on the Government to rebalance the tax and regulatory system in order to combat problem drinking and give the hospitality industry a fairer chance to compete with supermarkets and other alcohol retailers.

The submission suggests that ‘below cost’ should mean the real cost of alcoholic drinks to retailers, and not just the tax incurred on them. It also suggests either a voluntary or mandatory code on alcohol sales; a review of the Licensing Act to enable more licences to be revoked or refused; a consideration of different VAT rates for leisure businesses; and a rebalancing of alcohol duty to encourage the drinking of lower strength drinks including beer.

Joining the BBPA, ALMR and Noctis in the submission are the British Hospitality Association, the British Institute of Innkeeping, the Federation of Licensed Victuallers Associations and Business in Sport and Leisure.

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See also: Government moves on below-cost alcohol