Letter: Better tax plan

As ALEX Salmond belatedly looks to reduce business taxes following the fall-out from the so-called "Tesco Tax" (your report, 28 January) he should consider a more directed taxation reduction rather than a blanket discount for all companies.

I was the first person to call for higher business rates for larger out-of-town retail stores in order to assist the struggling independent sector. Unfortunately, the Scottish Government proposed the "Tesco Tax" without adequate measures to mitigate the impacts on the larger stores or stimulate economic growth in Scotland.

The Scottish Government should therefore reduce business rates by 50 per cent for all new-build retail and commercial properties for a period of two years, on the condition that the construction project has commenced within the new two years. This will target the companies that want to expand and create jobs.

It will also assist the construction market which will suffer badly from the proposed cuts in the capital expenditure budget over the next few years. It should be highlighted that at present there is little incentive for private companies to construct new commercial, industrial or retail properties in Scotland.

The subsequent increase in commercial activity in these sectors would very likely compensate for any tax reduction. And most importantly, this reduction in business tax would help put more pressure on the investment banks to lend as forward cost projections would be in better shape than at present.

I am, therefore, convinced that the Scottish Conservatives, and possibly others, will support the "Tesco Tax" on the condition that supermarkets are given this 50 per cent reduction for new-build properties.

Labour will also be forced to support this proposal if this additional measure will start a boom in retail development, creating new jobs in the construction and retail sectors for young unemployed Scots, which is their main concern.

Brian Clifford Pope

Charterer civil engineer

Beechgrove

Lockerbie