The government has unveiled plans to prohibit licensed retailers from selling alcohol below the rate of duty and VAT in England and Wales.

According to the Home Office proposals, new pricing controls would help reduce the level of alcohol-related crime and follows a review conducted last summer. A one-litre bottle of vodka (37.5 per cent abv) will cost at least £10.71 and a 440ml can of lager (4.2 per cent abv) would not be available for less than 38p.

Crime prevention minister James Brokenshire said: "We know that pricing controls can help reduce alcohol-related violent crime and this is a crucial step in tackling the availability of cheap alcohol. "The government will not stand by and let drink be sold so cheaply that it leads to a greater risk of health harms or drunken violence."

British Beer and Pub Association chief executive Brigid Simmonds said: "This is a clear measure that can be implemented quickly and will stamp out the worst cases of below-cost selling. "However, it will not have a significant impact on low-priced alcohol in supermarkets."

Davis Coffer Lyons director Trevor Watson added: "The proposed rates are so low that they will have absolutely no effect on the disparity of pricing between supermarkets and the on trade." In November, the Scottish Parliament approved legislation to help combat alcohol misuse. However, a minimum price was not included following opposition.