A long-running campaign by the British Retail Consortium (BRC) has proved successful today as Scottish Parliament voted to block the Large Retailer Levy proposed by the government north of the border.
The levy dubbed the ‘Tesco Tax’ would have forced retail stores with a rateable value of more than £750,000 into paying larger tax sums, but lobbying by the BRC and its local arm the Scottish Retail Consortium (SRC) has paid off.
SRC members warned that large companies may move out of Scotland if such legislation was introduced.
Scottish Finance Secretary John Sweeney said that the tax could raise around £30 million, which would be invested in Scotland’s economic recovery and local services that all firms can benefit from.
Commenting after today’s result, SRC Director Fiona Moriarty said: “The fact this ill-conceived levy has been stopped will come as a huge relief to everyone who cares about Scotland’s economic prosperity. Common sense has prevailed.
“The Local Government and Communities Committee did a crucial job by thoroughly investigating this tax and understanding the threat it posed to the Scottish economy and to Scottish jobs.
“We are delighted Parliament has followed suit by voting to prevent the levy from becoming law.
“Retail drives economic recovery and provides communities with jobs and services. Given the right support, it will help Scotland towards a secure and successful future.
“Allowing the levy to proceed would have endangered future jobs growth and investment.”