Retailers are unlikely to have to pay extra tax on larger stores in Scotland after the Local Government and Communities Committee of the Scottish Parliament voted in favour of annulling the proposed Large Retailer Levy.
The Scottish Parliament will vote on the measure next week, but sources told Retail Week it was unlikely to be voted through now the committee has advised it should be scrapped.
Sainbury’s boss Justin King had warned that the grocer would rethink its expansion plans in Scotland if the planned business rates hike for stores with a rateable value of more than £750,000 was implemented.
Fiona Moriarty, director of the Scottish Retail Consortium, which has been campaigning against the proposed tax, welcomed the committee’s decison: “The proposed Large Retailer Levy endangers future jobs growth and investment. We very much hope the Scottish Parliament will follow suit and vote to prevent it coming into force.”