Brighton & Hove City Council leader Jason Kitcat on efforts to help small businesses

Money spent in local and independent shops is worth many times more to the local economy, as it is re-spent locally by shop-owners – whether in wages to local people, in contracts with suppliers, or to local accountants. They also employ many more local people relative to their turnover when compared to large supermarkets.

In comparison research suggests that some 95% of the money spent in large shops is siphoned away from our local economy to head office and shareholders.

The odds are stacked even further against small businesses through the nationally-set business rates scheme. The Federation of Small Businesses estimates that business rates are five times more expensive for small businesses as a proportion of turnover than they are forlarge companies.

Brighton & Hove City Council is one of a number of councils looking at ways in which we can rebalance this historic unfairness which currently favours larger retailers. This is even more important as the government has ruled out reviewing business rates for another three years.

So I’m asking for cross-party support for a national campaign calling for powers to introduce a local levy on large retailer outlets such as supermarkets.

This would represent a tiny fraction of the huge profits they make; the largest four supermarkets each posts operating profits of more than half a billion pounds a year. This measure would make a huge difference, and could be redistributed to help smaller independent businesses through schemes like local rate discounts, area improvements or bus routes.

Large shops like supermarkets have a part to play in our local economy. However we want to make sure that they contribute to as well as take from local communities – especially when their continued expansion threatens the diverse small businesses that make Brighton & Hove such a unique place to live and visit.