UK supermarkets like Tesco, Aldi, and Lidl are accused by Alcohol Change UK of exploiting a tax loophole, intended to boost apple production, to sell high-strength cider at "pocket-money prices." This "super-strength subsidy" allows cider (3.5%-8.5% ABV) to be taxed at less than half the rate of beer, leading to prices as low as £1 a litre for 4% ABV cider, comparable to apple juice. Campaigners argue this practice harms public health, contributes to social problems, and puts pressure on the NHS, urging the government to close the loophole.
UK supermarkets exploit tax loophole to produce cider at ‘pocket-money prices’
AlcoholCiderSupermarketsRetail industryTescoAldiLidlHealthAlcoholismSocial exclusionUKBusinessFoodSociety
AI Summary
TL;DR: Key points with love ❤️UK supermarkets like Tesco, Aldi, and Lidl are accused by Alcohol Change UK of exploiting a tax loophole, intended to boost apple production, to sell high-strength cider at "pocket-money prices." This "super-strength subsidy" allows cider (3.5%-8.5% ABV) to be taxed at less than half the rate of beer, leading to prices as low as £1 a litre for 4% ABV cider, comparable to apple juice. Campaigners argue this practice harms public health, contributes to social problems, and puts pressure on the NHS, urging the government to close the loophole.
Trending- 1 Since 2020: The cost of the cheapest cider has decreased or barely risen, while other alcoholic drinks have soared.
- 2 Over recent years: Supermarkets have been exploiting the tax loophole.
- 3 Present: Alcohol Change UK publishes research and campaigns for the loophole to be closed, writing to the public health minister.
- High-strength ciders are sold at "pocket-money prices," making them highly accessible.
- Harm to public health, contributing to alcoholism and social problems.
- Increased pressure on the NHS and police services.
- Multinational companies are cashing in on tax reliefs meant for genuine small UK-based cider makers.
- Leading to early deaths.
What: UK supermarkets are exploiting a tax loophole to sell high-strength cider at very low prices.
When: Over recent years, with specific price comparisons made since 2020.
Where: United Kingdom (UK).
Why: Supermarkets are taking advantage of a tax subsidy originally intended to boost apple production. This allows them to sell cider at significantly lower prices than other alcoholic beverages, increasing sales and profits.
How: Under UK law, cider between 3.5% and 8.5% ABV is taxed at £9.67 per litre of alcohol, which is only 46% of the rate applied to beer (£21.01 per litre of alcohol). Alcohol Change UK conducted research to highlight this disparity and has written to the public health minister, urging the government to scrap the "super-strength subsidy."