Eric Pickles: ‘Tesco tax’ is a lazy solution to ailing high streets

Eric Pickles says that imposing new taxes on supermarkets will push up the price of food. Photograph: Rex/Rex Features

Eric Pickles has slapped down an attempt by cash-strapped local authorities to levy a “Tesco tax” on large retailers to help support local economies.

The secretary of state for communities and local government said the proposal, which was backed by 20 local authories and led by Derby city council, was a “lazy” solution to the problem of ailing high streets. “Imposing new, additional taxes on supermarkets and larger shops will ultimately push up the price of food and the cost of living, hitting low-income families the hardest,” he wrote in a letter to Derby city council.

Pickles said that large retailers, particularly supermarkets, were just as affected as small stores by changing shopping habits, which he blamed on the rise of the internet. He said local authorities already had a wide range of powers to help high streets, including the ability to change parking, planning and licensing regimes.

“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.

Derby wanted to levy an additional tax worth up to 8.5% of the value of the business rate on large stores. Derby city council was unavailable for comment.