‘Tax raid on cigarettes and alcohol will damage us’

THE head of a retail industry lobby group has attacked an “illogical” plan to tax large stores that sell cigarettes and alcohol.

Ian Shearer, director of the Scottish Retail Consortium (SRC), called the Scottish Government’s public health levy dangerous, ill-conceived, discriminatory, damaging and a tax-raid on retail revenues.

The SRC and major retailers attended a meeting with senior SNP minister Richard Lochhead yesterday.

Mr Shearer said: “The cabinet secretary faced the impossible task of defending an illogical measure.

“This type of policy-making sends out a dangerous message to businesses of all kinds about Scotland as a place to invest.

“This is no way to treat a sector that provides around one in ten jobs in Scotland.”

The tax, to be imposed through a business rates supplement, was announced by finance secretary John Swinney as part of his spending review for the next three years. He said it would raise around £110 million for public health initiatives.

Speaking after the forum meeting yesterday, Mr Lochhead said: “Scotland’s health and social problems associated with alcohol and tobacco use are well documented and the income of the public health levy, a supplement on business rates, will be used to contribute towards the preventative spend measures that will be taken forward jointly with the Scottish Government, local authorities, the NHS and the third sector.”