Saturday, December 15, 2012

PM's claims supermarkets overcharge for food to fund cut-price booze dubbed 'nonsense' by retail group


By Becky Evans


PUBLISHED: 05:08 EST, 15 December 2012 | UPDATED: 05:11 EST, 15 December 2012




David Cameron said there is 'good evidence' food prices are higher in supermarkets to fund cheap alcohol

David Cameron said there is 'good evidence' food prices are higher in supermarkets to fund cheap alcohol



Claims by David Cameron that supermarkets are funding cheap alcohol by overcharging shoppers for food have been branded 'nonsense'.


The Prime Minister said yesterday there was 'good evidence' that supermarkets were subsidising low prices on wine, beer and cider by increasing the cost of everyday food.


The British Retail Consortium have rejected the claims and demanded to know on what evidence it was based.


Mr Cameron was quoted in the Daily Telegraph as saying: 'There is some evidence, pretty good evidence, that what some supermarkets are doing is actually pushing up the price of food to heavily pay for the very discounted, very cheap alcohol.'


He was speaking to a group of factory workers in north Wales yesterday about the Government's proposals to introduce a minimum price of alcohol of 45p a unit to tackle Britain's binge drinking problem.


The Prime Minister said the proposals would prevent strong lager being sold for as little as 25p a can.


However, supermarkets have denied they are overcharging for food to fund cheap alcohol.


Andrew Opie, from the British Retail Consortium, told the Daily Telegraph: 'This is nonsense. What evidence? The Government's own figures show alcohol prices rising at exactly the same rates as food prices.'


Downing Street told the newspaper Mr Cameron's comments were based on research by Newcastle University liver specialist Dr Chris Record in 2009.


The British Retail Consortium said Mr Cameron's comments were 'nonsense'

The British Retail Consortium said Mr Cameron's comments were 'nonsense'



The 45p-a-unit rule would slap an extra 70p on the price of some bottles of wine and an additional £1.30 on a two-litre bottle of cider.


Last month, the European Commission warned Mr Cameron that his plan of putting a minimum price on alcohol is illegal.


A nine-page letter from Brussels to the Prime Minister said the scheme would break laws governing the free movement of goods.


The average family drinks bill could soar by almost £100 a year under the Government's plan.


Bottles of wine could not be sold for less than about £4.05 each, beer will be at least 90p a can and a bottle of vodka will cost at least £11.70.







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