Local British authorities want a "Tesco Tax" | RetailDetail

Local British authorities want a "Tesco Tax"

Local British authorities want a "Tesco Tax"

Derby's city council wants to tax larger supermarkets in an attempt to flow consumer spending back to the community, but the government fears this will result in price hikes.

500 million euro in taxes

Nineteen other local authorities have backed Derby's question, also in an attempt to get expenditures flowing back to the cities and communities. Right now, they feel that most of that money disappears from the local community. Said tax would bring in some 400 million pounds (500 million euro), according to the BBC.

 

"Research has shown that 95% of all the money spent in any large supermarket leaves the local economy for good, compared to just 50% from local independent retailers; this levy is a modest attempt to ensure more of that money re-circulates within and continues to contribute to local jobs and local trade," the report states.

 

Sustainable Communities Act

The proposal is part of the Sustainable Communities Act, which allows local governments and communities to propose solutions to local problems. Only supermarkets that are worth more than 500,000 pounds (630,000 euro) would be subjected to the levy, up to 8.5 %. Both Scotland and Northern Ireland have similar 'Tesco Tax' systems.

 

The government has to react to the proposal within 6 months. If they agree, then the tax will not only be implemented in the 20 cities and communities that have backed the proposal, but it will be implemented for every local government. If that were the case, supermarkets could lose up to 190 million pounds (240 million euro). If other retailers are also impacted, then the cost could be 400 million pounds (505 million euro).

 

The government has already indicated it is not a fan of the tax, as it fears price hikes will follow and it had previously said it does not want price hikes that will mainly hit families with a low income.

Questions or comments? Please feel free to contact the editors


Sales of PCs grows for the first time in six years

13/07/2018

For the first time in six years computer sales showed growth again: in the second quarter of 2018 they increased by 1.4%. According to research firms Gartner and IDC, the sales increase is mainly due to growth in business markets.

Retailhub Inspiration Tour: the customer journey becomes very different

09/07/2018

Thanks to Retailhub by RetailDetail, Antwerp has one more unique retail hot spot. Professionals can experience the future of retail in the Benelux' only retail inspiration platform, with 1250 sqm of innovative technology and huge trends.

Breakthrough in Karstadt-Kaufhof merger

05/07/2018

Canadian Hudson’s Bay and Austrian Sigma Holding have not reached a preliminary agreement about the merger of their respective department store chains Kaufhof and Karstadt: the Canadian company says it has only signed a letter of intent.

Alibaba CEO and Belgian PM discuss investment in Liège

04/07/2018

Alibaba founder Jack Ma has discussed a possible investment in Liège, Belgium with the country's prime minister Charles Michel. Afterwards no decisive statements were made by either party.

Toys "R" Us closes American stores amidst reboot hopes

02/07/2018

Final curtains for Toys "R" Us in the United States: all the stores have closed and 30,000 employees are laid off. Against all odds, some however still hope for a second life for the troubled chain.

“The biggest threat for department stores? Mismanagement!” (Maurizio Borletti, Chairman of Borletti Group)

28/06/2018

Are department stores a relic of the past, or do they contain seeds for the future of retail? That is the central question in our interview series ‘A love for department stores’, where we will discuss the challenges and opportunities for the business with a selection of leading voices in retail.