DIYWEEK.net

Firms warn that Scottish Government's proposed large retailer levy will harm business expansion and endanger future job creation.
The Scottish retail sector is warning that an extra tax on stores with a rateable value of more than £750,000 could limit expansion in Scotland and harm employment prospects in the country. As a result, dozens of representatives from major retailers and key business organisations in Scotland have met to pledge their opposition to the new levy.

Members of the campaign, dubbed Competitive Scotland, include Debenhams, Asda, John Lewis, Next, Sainsbury's, Tesco, Morrisons, Scottish Chambers of Commerce and CBI Scotland.

According to the SRC, large retailers already pay approximately a quarter of all business rates across Scotland - the highest proportion of any sector. In 2009, the retail sector contributed around £24bn to the Scottish economy, accounting for 11% of the nation's GDP.

Meanwhile, the big four supermarkets alone plan to open a total of around 20 new stores in Scotland over the next two years, creating around 8,000 new jobs - expansion plans that could be hindered by the introduction of the new levy.

SRC director Fiona Moriarty said: "To have so many major retailers and key business organisations brought around the table by a single issue is highly significant. This reflects the level of concern about the proposed large retailer levy and the importance the whole sector places on halting it. Preventing this unfair tax on successful businesses is at the top of the retail sector's agenda."

She added: "Retailers are demonstrating their commitment to Scotland by opening more stores and employing a growing number of local people. It would be terrible to see that growth slowed or halted."