It’s time for big business to plough money back into the high street, Derby city council has said in a response to Eric Pickles’ rejection of its plan for a “Tesco tax.”
The council said it would continue to lobby for support for its proposal to levy higher business rates on large out-of-town retailers despite the secretary of state for communities and local government rejecting the idea as “lazy” and likely to push up the price of food.
“This is an all-too-familiar response from a government minister who holds everything local government stands for in contempt,” said council leader Ranjit Banwait. “Our proposal under the Sustainable Communities Act calling for an increase in business rates on out-of-town retail outlets is not lazy – it’s in response to what our local businesses are telling us; that it’s time those companies earning millions of pounds each year put more of their profits back into the local community.”
He said the idea was now backed by 23 local authorities in England as well as unions, the National Federation of Sub-Postmasters and the Campaign for Better Transport. The council said the tax would cost less than 0.1% of supermarket’s income and so would not be passed on to shoppers in higher prices.
“It is a well-known fact that large retail outlets have a negative impact on local shops, jobs and businesses, while independent retailers ploughed investment back into their local area,” Banwait said.
The council is to appeal against Pickles’ decision and present its idea to the Local Government Association in January.
Last week, Pickles said the government would not support that idea and that local councils had many other options to help high streets including the ability to change parking, planning and licensing regimes. He said additional taxes on large stores would only add to the pressure on businesses already struggling to cope with changing consumer habits.
“Your proposal is sadly an all-too-predictable siren call from some parts of local government: namely, the solution to every policy issue seems to be how to impose new taxes. This is a lazy way of thinking,” Pickles wrote to the Labour-controlled council.
