Tuesday 1 February 2011

ALTERNATIVE TO SUPERMARKET LEVY IS £30m "BLACK HOLE" IN BUDGET - says Mather

Jim Mather, MSP Argyll & Bute has expressed disappointment that opposition politicians are uniformly hostile to Scottish government proposals to impose a modest increase in business rates to be paid by the largest supermarket outlets that would bring those units into line with the level of rates that large commercial facilities pay elsewhere in the UK.

Jim Mather said:

"I am genuinely surprised at the degree of opposition that this proposal has raised, particularly as local politicians have earlier been vocal in raising concerns about the effect that large retail supermarket operations are having on town centre trading throughout Argyll & Bute.

Understandably the big four, Tesco, Asda, Morrisons and Sainsbury are vocal in their reaction to such a proposal but in reality the Scottish Government proposals are modest and will only bring the level of business rates that they may have to pay here into line with the level of rates they presently pay in England. Suggestions that this may inhibit expansion and employment provision should be judged in that light.

As proposed, this legislation would affect only one outlet within Argyll & Bute and the consequent budget income - around £30 million - would go some way to redressing the balance for small traders throughout the county. It has been demonstrated that at the level of profits that these giants generate this is a very minor tax adjustment.

I find it astonishing that Labour, along with LibDems and Tories, would seek to lop the Scottish budget by £30 million to keep large supermarkets happy. Could it be that the financial support that some political parties receive from the supermarkets is having undue influence here? These are the same politicians who appear unhappy that Council tax payers have benefited from four years of frozen Council tax which for band D taxpayers in Argyll & Bute has so far saved them £247.

Although they are resolutely opposed to SNP Local Income Tax plans Labour has still failed in more than three years to indicate how they will raise such revenue. It would appear that they and their allies would rather have pensioners pay more in Council tax than see highly profitable supermarket chains contribute just a little more to society."