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Supermarket shoppers pick 'price over quality'

Budget chains like Aldi and Lidl are challenging the big supermarkets Credit: PA

Nearly half of shoppers choose their supermarket based on price, a new poll has found.

And of the 38% of consumers who have changed supermarket in the last year, two thirds said they did so because of price.

The survey by Good Morning Britain and OnePoll also revealed that cost is what influences buying habits the most, above quality, offers or reward points.

German low-cost supermarket Lidl has been included in The Grocer magazine's weekly price survey for the first time, which found it sold a basket of common groceries for 29% cheaper than Tesco.

It also came in second for customer service.

Aldi's sales have jumped 32% in the last year, taking its market share to a record 4.8%.

Tax on supermarkets 'would hit the poor hardest'

An extra tax on big supermarkets would hit the poorest families hardest, the Government has said.

The Department for Communities and Local Government has rejected calls from 20 local authorities for a new levy on supermarkets to help revitalise local shopping areas.

The Government said an extra tax on supermarkets would hurt the poor. Credit: Sean Aidan/Eye Ubiquitous/Press Association Images

"Imposing new, additional taxes on supermarkets will push up the price of food and the cost of living, hitting low-income families the hardest," a DCLG spokesman said.

He said there were "much better ways to support small shops".

Councils call for levy on big supermarkets

A coalition of 20 councils is calling for a new levy on big supermarkets to pay for improvements in local shopping areas.

The local authorities say the tax could raise money to help revitalise town centres.

Councils claim big supermarkets are squeezing the life out of local areas. Credit: PA Images

The leader of Derby City Council, which is leading the group, said that life was being "sucked out of the city centre" by big out-of-town stores.

Ranjit Banwait told Radio 4's Today programme the move was a response to "the worst cuts in history" to council funding.

A similar levy is in place in Northern Ireland, while in Scotland health services for smoking and drinking-related disease are partly funded by sellers of tobacco and alcohol.

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