Rip-Off Britain

Rip-off Britain is an expression used by some to refer to the phenomenon in which some products and services cost significantly more in the United Kingdom than in other countries, especially other member states of the European Union and the United States, than a basic currency conversion would permit. The term was coined by the tabloid press in the late 1990s and sees particular usage in mass media when the pound sterling is strong, as this drives down other states' prices in pounds.

In 1999, the Consumers' Association hired a stand at the British International Motor Show, only revealing on press day its true purpose in doing so—to highlight high British car prices. The organizers of the show, the Society of Motor Manufacturers and Traders, decided not to fan the media flames by ejecting the Consumers' Association.

By this point, the phrase had already taken hold in the mass media, and it became a term in frequent use to describe anything that was wrong with Britain. It also proved to be one of the elements leading to a tipping point in the harmonisation of car prices within the EU. The campaign was devised by UK advertising agency Claydon Heeley, who are known for such "guerrilla marketing" work.

The level of indirect taxation applied to some products such as alcoholic drinks, tobacco, and petroleum may serve to disguise high profit margins by the retailer, but it may also work in the opposite direction, squeezing profits when there are other legal markets with lower taxation.

While the standard UK rate of Value Added Tax (VAT) of 20% is generally triple or more that of US sales taxes, differences in prices can be far greater than this could account for.. The Crown Dependencies of Jersey and Guernsey are not part of the EU and Low Value Consignment Relief applied to imports. Retailers such as Play.com and Specsavers operated from Jersey or Guernsey specifically as a means of avoiding VAT.

...
Wikipedia