Dave Thompson MSP

Shops and pubs support increased rates for large retailers

News that the SNP Government’s health levy could create a level playing field between large and small retailers and businesses has been welcomed by MSP Dave Thompson.

The Scottish Grocers’ Federation and Scottish Licensed Trade Association have backed the SNP Government’s tax on large alcohol and tobacco retailers with the SLTA saying; “The Scottish public are not stupid, they already know they have been subsidising the cheap drink promotions offered by supermarkets by over-inflated prices for food, whether they consume alcohol or not. The government has identified a fair and reasonable way to raise money in this very difficult economic climate.

The SGF and SLTA also praised the proposal and say it would provide a more level playing field between large and small retailers.

The levy on large retailers selling alcohol and tobacco is expected to raise £110million over three years.

Mr Thomspon, SNP MSP for Skye, Lochaber and Badenoch, said:

“The SNP is committed to supporting growth for all businesses – large and small.

“It’s fantastic to hear corner shops, pubs and restaurants are all backing the Scottish Government’s plans to increase business rates for large retailers who sell alcohol and tobacco.

“And it is even more pleasing to hear they think this will benefit Scottish retailers and businesses in the long-term by creating a more level playing field.

“It is reassuring to hear customers will not be affected by a price increase.

“Instead Scots across the country will benefit from this health levy as the money will be put back into the public purse.

Notes:

It is proposed the business rates paid by large retailers of both tobacco and alcohol will be increased by a supplement from April 1, 2012.

SFG chief executive John Drummond said: “When you consider the benefits from new road systems enjoyed by the supermarkets, with business rates per square foot much cheaper than smaller stores with limited or no car parking and town centre congestion, this is a welcome attempt to create more of a level playing field.”

SLTA chief executive Paul Waterson argued the health levy would not push up prices for customers as claimed by the retail consortium. He said: “The Scottish public are not stupid, they already know they have been subsidising the cheap drink promotions offered by supermarkets by over-inflated prices for food, whether they consume alcohol or not. The government has identified a fair and reasonable way to raise money in this very difficult economic climate.”