English councils propose 'Tesco tax'

[dutchman]

A group of local councils in England is formally asking the government for new powers to tax large supermarkets.



BBC News has learned that Derby City Council has called for the right to bring in a levy as a "modest" effort to ensure supermarket spending "re-circulates" in local communities.

Some 19 other local authorities back a so-called "Tesco tax" on big retailers, which could raise up to £400m a year.

The government said additional taxes on supermarkets would push up food prices.

A similar tax already operates in Northern Ireland and Scotland.

The council has made the suggestion under the Sustainable Communities Act, which allows communities and councils to put forward ideas to government to solve local problems.

In its submission, the council says that while supermarkets bring some benefits, they have an overall detrimental impact on the sustainability of local communities.

"Research has shown that 95% of all the money spent in any large supermarket leaves the local economy for good, compared to just 50% from local independent retailers; this levy is a modest attempt to ensure more of that money re-circulates within and continues to contribute to local jobs and local trade," its report states.

The council wants the right to impose a levy on large supermarkets, retain the money raised, and use it to help small businesses. It said it could also use the money to support community centres and parks.

The extra business rates levy, of up to 8.5%, would affect any large retail outlet with a rateable value of more than £500,000.

The government will have six months to respond. If agreed, the levy would apply not just to the 20 councils seeking change but to all local authorities in England.

And if every one of them took it up, it could cost the big supermarkets alone an extra £190m in tax.

If the levy was imposed on all big out-of-town retailers, including businesses such as Ikea, Homebase and B&Q, it could raise about £400m in total.

But the government has already given an indication of how the idea will be received.

The move would hit low-income families the hardest, said the Department for Communities and Local Government (DCLG).
'Powerful legacy'

"We ruled out such a bid for higher taxes under the last round of the Sustainable Communities Act proposals," it said.

"There are much better ways to support small shops."

[rebbonk]

Where will they stop? The high streets are already empty because of their appalling rents and business rates. As usual, the little man in the street (the one at the end of the food chain) will end up paying.

It's not on! Councils need to get their acts together and become streamlined and efficient.