Plans to impose a tax on supermarkets in England - in an effort to boost smaller community enterprises - are likely to be dismissed by decision makers in London, who fear any such taxation could increase food prices for the shopper.
A council in England has asked the government for allowances to impose a business rate tax on large retail outlets, under the Sustainable Communities Act - similar approaches successfully brought about taxation of large outlets elsewhere in the UK, in Northern Ireland and Scotland. According to the BBC, councils including Oxford, Brighton and Hove, Preston, Southwark and Sefton have supported the original move from Derby City Council.
However, as reported in the Financial Times, "the Department for Communities and Local Government responded negatively to the request, saying extra taxes on supermarkets would 'push up the price of food and the cost of living, hitting low-income families the hardest'."
