Brighton and Hove Greens call for “supermarket tax”

A “supermarket tax” could be slapped on larger retailers under radical plans to help independent traders in Brighton and Hove.

Brighton and Hove City Council’s Green administration has joined a growing number of English town halls calling for powers which would allow them to force large retailers to pay an extra levy.

City leaders claim the move – which is yet to be introduced anywhere in England – is a way of rebalancing the local economy and halting the decline of the high street.

But critics, who include chancellor George Osborne, claimed the introduction of an 8.5% levy on larger outlets such as Tesco, Sainsburys and Asda, was unfair.

Green council leader Jason Kitcat, who pledged to lead the campaign to roll out the process nationwide, said: “A small local levy on large retailer outlets such as supermarkets would represent a tiny fraction of the multi-million pound profits they make.

“But it could really help us rebalance a national system that is weighted in favour of large retailers.

“This measure could see money 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 and Hove such a unique place to live and visit.”

The idea will be discussed at a town hall meeting next month.

Similar powers already exist in Northern Ireland where councils can impose an 8.5% levy on any retailer with a ‘rateable value’ above £500,000.

No council in England has yet to introduce a similar policy, which could be proposed under the Sustainable Communities Act but needs agreement from the Government.

If introduced in Brighton, Tesco, Sainsburys and Asda would be hit with the extra charge.

The proceeds – expected to be about £1 million – would then be used to support local services, at a time when Brighton and Hove must make about £20 million of savings in the coming year.

When asked about the idea last year, Chancellor George Osborne said: “What we need is for businesses to have confidence in taking people on.

“All I’d say is it’s not a good idea to increase taxes on businesses because we want businesses to create jobs.”

Tony Mernagh, of Brighton and Hove Business Forum, said: “I am sure it would be popular with most people as long as it wasn’t passed on to the consumer.

“But the Greens might be accused of letting their ideology get the better of them in singling out supermarkets.

“Why not late-night fast-food takeaways, MacDonalds, KFC, petrol stations or even party houses? All of them could be deemed to have antisocial elements that are ripe for fiscal correction.”

Conservative group leader Geoffrey Theobald said: “I am all in favour of supporting our small independent traders but I’m not sure that arbitrarily penalising supermarkets is the best way to do it.

“The Greens should remember that an awful lot of local residents are employed by these larger companies and many people rely upon the wide range of relatively cheap goods that supermarkets offer.

“Slapping another tax on them could well put all that at risk. In addition, local councils now retain half of the substantial business rates which these companies pay.

“I fear that this is yet another ill-thought through political gimmick from the Greens.”

Labour group leader Warren Morgan said: “It is good that the Greens are picking up this campaign started by Labour-run councils around the country to support the smaller traders our city relies on.

“They were slow to back our Small Business Saturday campaign last year, and many local traders might say it is “too little, too late” given the harm their policies have caused, but it is welcome nonetheless.”