Thousands of new jobs jeopardised by SNP Tesco Tax
Up to 8,000 jobs might be at risk should the SNP government impose a controversial new supermarket tax, according to the official body that represents Scottish retailers.
The warning comes as the chief of one of the biggest stores in the UK – Justin King – threatened to scrap the Sainsbury’s entire Scottish investment plans if ministers don’t shelve the tax hike. Plans from the big four supermarkets – namely Tesco, Sainsbury’s, Asda and Morrisons – might be slowed down or halted should the tax hike, which is designed to raise £30 million, be implemented, the Scottish Retail Consortium claims.
Under the proposed plans, high-street shops as well as out-of-town shopping malls will face paying £320,000 a year as well as existing business rates that they have to keep up with. For many, the announcement of the supermarket levy came as a complete and utter surprise during a meeting to discuss SNP’s draft budget plans for the next two years and has caused a storm of criticism.
Mr King warns that Sainsbury’s will have to scrap its plans to open new stores, which were set to start business in Scotland by the end of 2012, in the event that the tax comes in – moves that will put a combined damper on job creation. The SRC has warned of unthinkable consequences for the likelihood of investment in Scotland should the tax be imposed. Director Fiona Moriarty says that plans by the big four supermarkets aimed at establishing 20 stores in Scotland will be harmed by the new tax, which will affect retail firms and hit them with values outgoings exceeding £750,000.