Morrisons backs below cost ban

Supermarket giant Morrisons has urged the government to fine anyone selling alcohol below cost £25,000.

In a letter to Home Secretary Theresa May, corporate affairs boss Richard Taylor proposed a ban on selling "below the prevailing rates of duty and VAT".

The government has already vowed to ban the practice in a bid to eliminate cut-price booze deals.

In the letter Taylor states: "Having considered the arguments thoroughly, Morrisons believes that the best way for the government to intervene is to introduce a compulsory ban on off-licence sales of alcoholic beverages below the rate of duty and VAT."

He added: "Morrisons does not sell alcohol below duty + VAT. We believe that this mechanism, if enshrined in law, would provide an immediate and fair approach to stem the misuse of alcohol."

Deals recently offered at Morrisons stores include three cases of lager available for £18.

Outgoing Tesco chief executive Terry Leahy has also recently backed moves to ban below cost sales.