Blackfriar: Asda steps up price war, but there's another line of attack

It's not always the case at close neighbour Morrisons.

So what does Asda have in store this week?

Apparently, the Leeds-based company is going to refund every customer who can find their groceries cheaper anywhere else.

It's being billed as "the mother of all price wars".

And yes you too can join in if you can be bothered to check your grocery receipt and apply for a voucher if Tesco, Sainsbury's or Morrisons charge you more.

The scheme is very similar to the "Never Knowingly Undersold" motto used by John Lewis.

Hmm, how many people do you know who took that one up? To give Asda credit, the company has said its guarantee is permanent and it will cover about 70 per cent of groceries.

Some 10 per cent of items are left out because they are unique to Asda and another 20 per cent have been eliminated due to different pack sizes.

Items such as electrical equipment, DVDs or clothing will also not be included.

Asda, which always comes out as the cheapest supermarket in trade magazine tests, says a step up in promotions by its rivals has clouded its message about everyday low prices.

At a time when Asda is struggling to maintain its share of the UK grocery market as rivals Tesco, Sainsbury's and Morrisons benefit from rising demand for premium ranges, it is right the group should stake its claim as being the lowest cost supermarket.

But is that all consumers want?

As the economy picks up, it is becoming abundantly clear that British consumers want more than the cheapest price.

They want value. In other words, they want quality products at a good price.

That's why the likes of Waitrose, which appeals to an upmarket clientele, have done so well.

It's also the reason why Bradford-based Morrisons is beating all its rivals.

Yes, Morrisons' prices are cheap, but it also offers amazing value – no other supermarket can offer quality in-store bakers, butchers and fishmongers.

Asda is right to promote its price credentials, but Blackfriar believes customers will want more than that as we emerge from recession.

If the dire state of the UK's public finances wasn't clear enough, the plight of vehicle tracking firm Minorplanet Systems spelled it out in black and white.

Her Majesty's Revenue & Customs last week came calling for about 2m of outstanding taxes.

After months of threats, it issued a winding up petition for the Leeds firm's UK division, Minorplanet Ltd.

Minorplanet's UK arm accounts for about 40 per cent of the group's turnover.

The group is now trying to sell it, along with its Australian subsidiary, Minorplanet Asia Pacific Pty Ltd.

That HMRC felt it necessary to force Minorplanet Ltd to the wall shows how desperate the taxman is to help balance the books.

HMRC is also understood to have played a significant role in the demise of rail maintenance firm Jarvis, which was last month forced into administration after creditors came calling.

But Blackfriar believes this new, harsher approach to businesses may be counterproductive. Jarvis was winning new contracts and diversifying.

Minorplanet chief executive Terry Donovan insists he offered HMRC a clear and quick debt repayment strategy.

While every business must pay its taxes, driving viable firms to the wall, with the associated job losses that follow, may end up hindering the economy's recovery.