The Government believe patients are paying too much

The OFT argues that abolition of the 30-year-old "resale price maintenance" (RPM) scheme will cut the cost of the typical family's medical kit.

Over-the-counter medicines and the other goods covered by RPM, like vitamin pills, are now the only ones in the UK on which manufacturers can set minimum prices.

But the pharmaceutical industry claims the agreement protects independent chemists from the "monopolistic muscle of the supermarkets" and its abolition could cause many to shut down.

People realise that losing their local pharmacist for the sake of saving a few pence is just not worth it

Community Pharmacy Action Group

David Sharpe, chairman of the Community Pharmacy Action Group, said thousands of people will lose the advice and support of their local chemist if RPM is removed.

"Pharmacists rely heavily on their over-the-counter medicine sales to stay in business - without the protection of RPM they will simply not be able to compete with the buying power and aggressive pricing tactics employed by supermarkets," he said.

"People realise that losing their local pharmacist for the sake of saving a few pence on a limited number of medicines for a short period of time is just not worth it."

Mr Sharpe's group will be arguing that removal of RPM would significantly reduce the range of products available and price cuts would be "short lived and selective".

Smaller chemists says prices protects them from supermarkets

The case will begin before Mr Justice Lightman in the High Court in London on Wednesday and is expected to last until early December.

A decision is not expected until early next year.

The Restrictive Practices Court ended a similar scheme setting the minimum price of books - the Net Book Agreement - in 1997.

The Government has repeatedly signalled its intention to bring down the cost of medicines which soared to �5.29 billion last year.

In August the Government introduced a scheme to ensure the cost of generic drugs, as opposed to brand name drugs, are restricted.