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

The end of the retail employee


For the first time it’s safe to say that the future of work is really fabricated by futuristic events. People will need to become just as versatile as AI technologies and blockchain applications. Are you ready?

Alibaba doubles Lazada investment


Chinese Alibaba will once again invest 2 billion dollars (1.6 billion euro) into e-commerce company Lazada, active in Southeast Asia. It invested a similar sum in the group about two years ago.

CK Hutchison owner steps down


Li Ka-shing, CK Hutchinson’s owner and CEO, will step aside mid-May. The 89-year old will then pass on the baton to his eldest son, Victor Li, who will then take control of chains like Kruidvat and ICI Paris XL.

Toys ‘R’ Us goes bankrupt


The definitive end is approaching for the former toy store giant, Toys “R” Us. After the death sentence was signed for its 100 British stores, its American store network will also shut down.

Unilever chooses Rotterdam


The long-standing rumour has now been confirmed: Unilever will have its main office in Rotterdam, rather than London. The food and detergent giant’s board has made the call after nearly a year of debate.

Claire’s edges closes to bankruptcy


Store chain Claire’s is allegedly preparing to shut down in the next few weeks. Following that, the current owner, Apollo Global Management would give the company to several debtors.

Back to top