Usdaw urges MSPs to reject the Large Retailers Levy

The shopworkers union Usdaw has written to all MSPs urging them to reject the
Large Retailers Levy, branding Scotland's so called 'Big Shop Tax' a threat to
job creation and investment.

MSPs are likely to vote tomorrow (Wednesday 2 February) on the proposal, which
would impose a supplementary levy on all retail stores with a rateable value of
more than £750,000. The tax, which could be implemented from 1 April this year,
would increase the business rates of affected stores by nearly a third with some
stores facing an increase of nearly £500,000.

The Scottish Parliament's Local Government and Communities Committee voted
against the levy last week and Usdaw is hoping the full Parliament will do
likewise to protect jobs and future investment in Scotland's growing retail
sector.

John Hannett, Usdaw General Secretary said:

"The proposed levy is at such a high rate that it is likely to impact retailers'
decisions on whether to open new stores or expand existing ones, both of which
could mean Scotland losing out on major job creation and regeneration
opportunities."

"It might also mean smaller stores being built to avoid the levy. The average
number of jobs created in a large supermarket is over 600, whereas the average
number in a store that falls just under the limit is around 250 - a difference
of 350 jobs per store which could be lost to the Scottish economy."

"At a time when retail is one of the few sectors creating jobs, it seems
particularly ill-advised to jeopardise future investment by retailers and I hope
MSPs will realise this and vote against the levy."

Lawrence Wason, Usdaw's Scottish Divisional Officer added:

"The tax is also likely to impact on existing jobs and working hours, especially
in the large food supermarkets which operate on very low profit margins.
Managers would be under pressure to cut costs to reduce the impact of the levy
on their stores profitability and with staffing being one of the major costs for
retailers, they may consider stopping recruitment, reducing overall working
hours and in the worst cases, cutting the hours and jobs of existing staff."