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Tesco wants talks on tackling cheap booze

Tesco said today that it wants to work with the UK government to limit the sale of cut-price alcohol, amid growing concerns over the damage binge drinking does to society.

Britain's biggest supermarket chain said it could be accused of breaking competition rules unless ministers change the law to allow higher alcohol prices to be fixed.

Tesco said the changes must apply to all retailers, or shoppers would simply go to cheaper outlets. 'All shops that sell alcohol need to act together - and this is where we are being held back by the law,' the company said.

UK competition law prevents businesses discussing anything to do with price with each other.

Supermarkets have come under intense pressure from police, doctors and politicians to raise prices in both the UK and Ireland. They say cheap alcohol fuels youth crime and anti-social behaviour and places a huge strain on the health services and police.

A report last month in the UK said beer was cheaper than water in some stores.