Retailers call for urgent answers to levy questions

28 September 2011

Leading business organisations are calling on Scottish Finance Secretary John Swinney to answer ten key questions about the application and workings of his proposed supermarket tax, announced last week in the guise of a public health levy.

A coalition of business opposition is building against the supermarket levy. The Scottish Retail Consortium (SRC), CBI Scotland, Scottish Chambers of Commerce and the Wine and Spirit Trade Association wrote jointly to the Finance Secretary on Friday to condemn the new tax and the lack of consultation ahead of the announcement in the Scottish Draft Budget.

Retailers will press the Cabinet Secretary for Rural Affairs, Richard Lochhead, over the levy at a meeting of the Scottish Grocery Retailers' Forum arranged sometime ago by the Scottish Government. It is taking place this morning (Wednesday) in Edinburgh. John Swinney was invited to attend but instead has offered a meeting with business organisations at the end of October.

Ian Shearer, Director of the Scottish Retail Consortium, said: "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. We are obviously disappointed that, despite the regular Scottish Grocery Retailers' Forum taking place today (Wednesday), 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 original purpose of this morning's meeting was to help retailers and the Scottish Government work together on joint goals such as growing the sales of Scottish produce and planning for severe weather. 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 £110m bills attached."

The questions businesses are urgently seeking answers to are:

What is the process for consulting with retailers going forward?

Can you confirm that the tax will be applied to premises with a rateable value of £300,000 and above?

Will there be a stepped level at which tax will apply above the threshold?

How will the tax be calculated?

For what period will the levy apply? The announcement stated three years from April 2012, but will it continue after this period?

How much revenue does the Government intend to raise from the tax? Indicative figures state that it will be £110m over three years, is this confirmed?

What will the revenue be used for?

Will the revenue be ring-fenced for "public health"?

Will the tax apply to retailers selling both alcohol and tobacco or to retailers selling alcohol or tobacco?

Does this tax replace the social responsibility levy which was subject to considerable debate in the last parliament?

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