Minimum prices on off-trade's agenda.

(From Off Licence News)

Byline: Graham Holter

Minimum pricing regulations could be introduced in the UK off-trade without breaching European law, a Labour MP has claimed.

John Grogan, a fierce critic of cheap alcohol and a campaigner for UK pubs, believes supermarkets could be forced by order of the Competition Act to keep their drinks prices slightly above cost.

Tesco recently expressed an interest in working with the government to develop legislation limiting deep discounting of alcohol, but warned it would be "commercial suicide" to raise prices independently. Competition law prevents retailers working together to raise prices, but Grogan believes there is a legal mechanism available which would not be contrary to European free trade laws.

"The evidence is that there has been no increase in supermarket prices since the Budget," he said. "The gap between the on and off-trade is going to get wider, with the implications that has - not just for pubs, but increased consumption.

"We've got an alliance of the on-trade, the police and the health lobby and possibly ministers looking to do something and the big question mark is what would the supermarkets say? Tesco are the only ones to ...