Tax protests hit by Atlas development

Property giant Land Securities yesterday upheld its commitment to redevelop a major site in Glasgow, undermining a key plank of the Scottish Retail Consortium's (SRC) argument against a proposed £30 million retailer levy.

The group said further retail development in Glasgow at the "Atlas" site, opposite Buchanan Galleries, would start this year due to strong retailer interest in the space.

It comes despite the SRC's warnings to the Scottish Parliament yesterday that the government's levy would put retail development plans at risk as higher taxes would deter both developers and retailers from opening further stores in Scotland.

A spokesman for Land Securities said: "Glasgow is the second top retail centre in the UK and has a lot of inherent attraction (to retailers]."

The spokesman said the firm did not support the proposed tax, as "marginal" locations in Scotland would more likely be affected.

"If there is a choice between Airdrie or Middlesbrough it will go to Middlesbrough. There is reticence because of the extra cost," he added.

He said he was "confident" the 400m expansion of Buchanan Galleries, a joint venture between Land Securities and retail fund Henderson, would go ahead.