Is London more like the continent or more like the puritanical US when it comes to serving wine in the cheap neighborhood eateries? I know that the falafel places won't have alcohol because of religion reasons. but how about inexpensive Chinese or Indian restaurants or small inexpensive neighborhood places? One of our favorite things about Europe is being able to enjoy a reasonably priced bottle of wine with our meals. Here in the US restaurants seem to think they need to make all of their profit margins on wine. Also, how about beer? My husband is a beer affecionado and like to stop in for a late afternoon beer. Is that a budget breaker? We only eat and stop in at relatively inexpensive local places rather than the places in the high demand tourist locales.

The majority of Chinese and Indian restaurants are licenced to sell alcohol. Unfortuantely, just like the US it seems, wine is an easy target for a markup. A wine that can be bought for under £5 in a supermarket will rarely be under £10. I've seen popular wines such as Mouton Cadet, which sells for £5.99, sold for £15 or more.
I must admit to never having bought wine in an Indian restaurant as I would down a whole bottle just to cool down the vindaloo! Beer prices will be higher in restaurants, although not overmuch. Expect to pay about £2.50 for a pint of beer in a pub. I think that you'll find the prices more expensive than you'd expect because of the weak dollar.

I agree with AR.

I'm a major wine drinker with meals. But with Chinese, I'm actually just as happy sipping their tea, usually free. And although I'm not much of a beer drinker, with Indian, I simply MUST have beer! It just is so much better with the food than wine.

I have often found really good prices on wines in London -- better than at many medium priced places in the US. Particularly look for the Chilean or South African wines (at least if you're looking at red). I've ordered many Chilean Reserve Cabernets for $10 or less that were simply great -- and never had one that was terrible or even close to it!

I can't remember ever going to a UK restaurant without an alcohol licence (I am drawing a distinction between restaurants and cafes though) and some cheaper restaurants will allow you to take in your own wine although this isn't particularly common. If you do go somewhere that allows you to take your own alcohol in, do check whether they charge corkage.

i find drink and food prices to be outrageous in the uk....and with the dollar as it is now that is even worse...there are some bargains but you have to search them out...bar food can be quite good or pub grub as some call it...and usually on the cheaper side...lots of beer available there but most all wine is imported and thus considerably more expensive....but cheaper than in a restaurant....many pubs have restaurants attached, but to save money eat in the pub....

"most all wine is imported and thus considerably more expensive...."

Actually the home produced wines are quite pricy alough some are rather nice. I believe that because of the wet spring and hot dry summer in the South of England last year, the English vinyards are expecting 2003 to be very good.
Personally, I would have tea in a Chinese restaurant and lassi in an Indian. However, if you ask for the house red in an Italian restaurant it can often be surprisingly good.

Many "falafel places" - ie Middle Eastern restaurants - are licensed for alcohol.

Many Halal restaurants aren't: but many middle eastern restaurants are run by Christian Lebanese. And most Turkish, Malay or Bangladeshi restaurants serve booze whatever the religious views of their proprietors.

Incidentally, wine isn't expensive in UK restaurants because it's imported: there typically isn't any import duty. Wine is expensive because there are high taxes on all booze, wherever it comes from.

English wine is almost always more expensive than wine from real wine producing countries (and hence attracts more higher tax), and is almost impossible to find in London restaurants, though if you find it in the wine growing areas, it's always supposed to be getting better than it used to be.

But it's still not up to the standards of Texas or Ontario, never mind Italy, California or Australasia.

Thanks I've learned a lot. We are thinking of London on a budget and are trying to investigate all different types of costs. WE don't absolutely need to have wine with dinner, but on vacation it is nice when you just want to sit around and have a relaxing meal. Do the smaller restaurants serve carafes of house wine?

I must disagree about English wines.
If you look at http://www.english-wine.com/variety.html
you will see that some English wines have done extremely well in blind tastings.
Certain Three Choirs wines are now served on Eurostar.