Businessess clash over supermarket tax "level playing field"

The debate over plans for a super-tax on large retailers continued as big business clashed with small business at the Scottish Parliament this morning.

The Scottish Retail Consortium (SRC), which represents those facing the proposed tax rise, argued that economic problems were not their fault, saying that large ventures helped stimulate economic activity already.

However, the Federation of Small Businesses (FSB) said that MSPs needed to "level the playing field" to give them a chance of competing.

SRC director Fiona Moriarty: "If you ask many small retailers they would tell you that the big retailers are the footfall drivers. That`s what brings people into our towns and cities.

"They come in to see the big, new, exciting stores and then linger and use all of the other services."

However, FSB Scottish spokesperson Colin Borland said the levy is supported by almost three-quarters of the body's members because of the decline of small businesses.

He said: "Independent greengrocers dropped from 1,160 in 1998 to 400 in 2008. Similarly, butchers have gone from 1,300 to 755.

"Therefore, there is a question over whether investment in out-of-town shopping centres is actually good for local small businesses."

He added: "If you level the playing field as much as possible it will be easier for small businesses to do what they`re best at - trading us out of this mess."

Committee deputy convener Bob Doris said it was "ridiculous" to assume that the levy would lead to big retailers pulling out of towns and cities.

The SNP MSP said: "I think there`s been a significant over-egging of the argument on behalf of the large retailers.

"This levy will affect 225 stores, over 90 per cent of those stores will be the big four supermarkets plus B&Q, so we`re talking about a couple of dozen outwith those companies.

Labour MSP Mary Mulligan called on the Scottish Government to subject the levy to a full Retail Impact Assessment (RIA).

She said: "I think it would have moved us away from some of the soundbites and some of the misinformation and would have allowed us to have very clear and thorough debate from day one."

An RIA was previously rejected as "a waste of resources" for a tax that affects just 0.1% of Scottish businesses.

Finance Secretary John Swinney will be called before the committee next week to explain his decision.

The plans looks set to be voted out next week unless he can rally some last-minute support from Holyrood`s openly-sceptical opposition parties.