Leading business rates advisor, Gerald Eve has welcomed yesterday’s (2 February 2011) decision of the Scottish Parliament to annul the much criticised larger retailer levy or more commonly known as the “Tesco Tax”.
MSP’s yesterday rejected the Scottish government plans for a large retailer levy which was estimated to be bring in an extra £30m to help offset budget cuts. It was opposed by MSP’s as being “anti-competitive” for Scottish Business.
Ken Thurtell, partner in charge at Gerald Eve’s Glasgow Office welcoming the news said: “The retailers on our high streets are feeling the effects of the recession. The introduction of this tax could have prevented investment from the UK’s biggest retailers into Scotland which would not have been beneficial for the nation. Its imposition would also generated major concerns across Scotland Plc that other key strategic businesses might have been targeted in the same arbitrary manner.
During the debate The Scottish Government was subjected to heavy criticism for the lack of consultation with business on the introduction of the levy.
Thurtell added: “Sadly this government has a blighted track record in this area. In February 2010, they also failed to consult on the issue of Transitional Relief which would have helped protect the Businesses against big fluctuations in their rates bills.”