Clarification sought over new tax on supermarkets

The retailers have called for the finance secretary to answer ten key questions about the application and workings of the tax, which would see large stores in high streets and out-of-town retail parks hit with a 35 per cent increase in their business rates.

The Scottish Retail Consortium (SRC), CBI Scotland, Scottish Chambers of Commerce and the Wine and Spirit Trade Association wrote jointly to Mr Swinney last week to condemn the new tax and the lack of consultation ahead of the announcement in the Scottish draft budget.

A meeting between the Scottish Grocery Retailers’ Forum and the Scottish Government is due to take place today, but Mr Swinney will not attend, agreeing only to a meeting with retailers in late October.

“There are many questions which retailers need answering urgently before they can assess the full impact of the new tax, which we are told is taking effect in just six months’ time,” said Ian Shearer, director of the Scottish Retail Consortium.

“We are obviously disappointed that, despite the regular Scottish Grocery Retailers’ Forum taking place today, the finance secretary isn’t able to attend.

“It’s clear a wide-ranging coalition of Scottish business groups opposed to the levy is developing quickly.

“They understand that it’s supermarkets being targeted this time, but who knows who could be hit by this type of random and discriminatory tax next?”

The questions include whether the tax will replace the social responsibility levy debated in the last parliament, how the tax will be calculated and whether there will be a stepped level at which tax will apply above the threshold.

Mr Shearer added: “Retailers have got an excellent track record on helping the Scottish Government on the economy, investment and jobs, and delivering its objectives across a wide range of policy areas.

“But it’s difficult to work in partnership with a government which springs surprises with £110 million bills attached.”