The taxman takes his cut: http://www.hmrc.gov.uk/rates/alcohol-duty.htm http://www.hmrc.gov.uk/rates/alcohol-duty.htm Plus there is "VAT" - 'value added tax',

The taxman takes his cut: http://www.hmrc.gov.uk/rates/alcohol-duty.htm http://www.hmrc.gov.uk/rates/alcohol-duty.htm Plus there is "VAT" - 'value added tax', not that I have ever worked out what value gets added by the tax. Our friends in continental Europe have lower tax rates. Hence the discrepancy you see. The problem in the UK over recent years has been with pubs. Unless they can get some deluxe food options together then they have a tough time making a profit. The supermarkets sell alcohol far cheaper than they can, furthermore there has been a smoking ban. Consequently your dedicated alcoholic has stayed at home, with his widescreen TV and supermarket alcohol.