Chamber
Meeting of the Parliament 02 February 2011
02 Feb 2011 · S3 · Meeting of the Parliament
Item of business
Non-Domestic Rates (Levying) (Scotland) (No 3) Regulations 2010
This is the third time that we have brought to Parliament concerns about the rates that businesses in Scotland pay. In advance of today, we have consistently raised concerns about the lack of transitional relief for businesses that saw a massive increase in their rates bills as a result of the revaluation last year. Some hotels and by no means large businesses in my constituency and throughout Scotland saw increases in their bills of up to 200 per cent and received no transitional relief, but their English counterparts did. In some instances, that has led to businesses that have had difficulty over the past year not recruiting and not investing in their businesses. It has also led to nearly 80 per cent of all businesses that pay rates appealing their rates bills, which is unprecedented. That is the context in which we bring this debate.
On previous occasions, we were unable to secure Conservative party support for our campaign for fairness for those businesses, but I am hopeful that today the Conservatives and Labour will back our moves to strike down an arbitrary tax on one particular sector in the Scottish economy—a sector that is vital to the economy, as Jim Mather indicated today in his press release on behalf of the Government.
The tax on jobs was not consulted on, nor was it considered as part of a wider policy objective. It was arbitrary and it became apparent very fast that, although it was spun that it would impact only on out-of-town centres, it would hit Princes Street, Union Street and Sauchiehall Street—streets in cities across Scotland. The Scottish National Party changed tack quite quickly to take an anti-supermarket stance in particular.
When it comes to criticising others, it is hard to beat SNP member after SNP member laying into what they considered to be their newly established enemy—the large retailers in Scotland—in last week’s budget debate. The largest of those retailers is, of course, Tesco. We were told that Tesco is so huge, its turnover is so colossal and its profits are so large that it should pay more in Scotland. Joe FitzPatrick said:
“That needs to be considered in the context of the £3.4 billion pre-tax profits declared by the company last year; it does not seem unreasonable that Tesco should contribute a little bit more.”—[Official Report, 26 January 2011; c 32602.]
Why cut the business rates that Tesco Bank pays and increase the rates that Tesco stores pay? Why tax the Tesco in Galashiels more but cut the tax that Tesco Metro stores in Edinburgh pay? How does that help small retailers and how does it mean that Tesco will pay more?
If the shoulders of such companies are so broad, I am surprised by how much the SNP has given Tesco in regional selective assistance grants in the past three years. In October 2010, it was given £1.7 million for Tesco Bank.
Members: Jobs.
On previous occasions, we were unable to secure Conservative party support for our campaign for fairness for those businesses, but I am hopeful that today the Conservatives and Labour will back our moves to strike down an arbitrary tax on one particular sector in the Scottish economy—a sector that is vital to the economy, as Jim Mather indicated today in his press release on behalf of the Government.
The tax on jobs was not consulted on, nor was it considered as part of a wider policy objective. It was arbitrary and it became apparent very fast that, although it was spun that it would impact only on out-of-town centres, it would hit Princes Street, Union Street and Sauchiehall Street—streets in cities across Scotland. The Scottish National Party changed tack quite quickly to take an anti-supermarket stance in particular.
When it comes to criticising others, it is hard to beat SNP member after SNP member laying into what they considered to be their newly established enemy—the large retailers in Scotland—in last week’s budget debate. The largest of those retailers is, of course, Tesco. We were told that Tesco is so huge, its turnover is so colossal and its profits are so large that it should pay more in Scotland. Joe FitzPatrick said:
“That needs to be considered in the context of the £3.4 billion pre-tax profits declared by the company last year; it does not seem unreasonable that Tesco should contribute a little bit more.”—[Official Report, 26 January 2011; c 32602.]
Why cut the business rates that Tesco Bank pays and increase the rates that Tesco stores pay? Why tax the Tesco in Galashiels more but cut the tax that Tesco Metro stores in Edinburgh pay? How does that help small retailers and how does it mean that Tesco will pay more?
If the shoulders of such companies are so broad, I am surprised by how much the SNP has given Tesco in regional selective assistance grants in the past three years. In October 2010, it was given £1.7 million for Tesco Bank.
Members: Jobs.
In the same item of business
The Deputy Presiding Officer (Alasdair Morgan)
SNP
The next item of business is a debate on Parliamentary Bureau motion S3M-7841, in the name of Mike Rumbles, on the Non-Domestic Rates (Levying) (Scotland) (N...
The Deputy Presiding Officer
SNP
Before I call members to speak, I point out that time is limited, so we had better stick to the speaking time limits. I call Jeremy Purvis, who has seven min...
Jeremy Purvis (Tweeddale, Ettrick and Lauderdale) (LD)
LD
This is the third time that we have brought to Parliament concerns about the rates that businesses in Scotland pay. In advance of today, we have consistently...
Jeremy Purvis
LD
I hear SNP members shouting “Jobs, jobs.” I will come back to jobs in a moment. Perhaps those members are referring to the 8,000 jobs that the Scottish Retai...
Gavin Brown (Lothians) (Con)
Con
The Scottish Government’s proposals are nothing more than an ill-judged raid on retail at a time when it least needs it. At the beginning of the process, bac...
Margo MacDonald (Lothians) (Ind)
Ind
As another Lothians member, I am intrigued as to how much it is estimated the 12 stores in Princes Street will lose. Does the member have those figures to hand?
Gavin Brown
Con
From the most accurate figures that I have seen, which involved adding up the stores that we knew about—in which we were assisted by the Edinburgh Chamber of...
Margo MacDonald
Ind
Each?
Gavin Brown
Con
That is the total for Princes Street. It might be slightly more or less, but that is the ballpark figure. That is additional taxation, on top of the rates th...
The Minister for Enterprise, Energy and Tourism (Jim Mather)
SNP
To what extent does the UK Government consult on rises in VAT and other changes that it makes?
Gavin Brown
Con
I took that intervention for a specific reason and the minister was unable to tell us what dialogue took place. There was nothing—not even a bit of brainstor...
Gil Paterson (West of Scotland) (SNP)
SNP
Nonsense.
Gavin Brown
Con
We hear the loyal SNP back benchers, but the point is that, because the Government could not be bothered to do a business and regulatory impact assessment, w...
Andy Kerr (East Kilbride) (Lab)
Lab
In last week’s debate on the budget, I said that rising unemployment was the signal failure of nearly four years of SNP Government. When John Swinney deliver...
Stuart McMillan (West of Scotland) (SNP)
SNP
The member mentioned Princes Street. Has he seen Princes Street in Port Glasgow, which has been decimated by the huge Tesco at the bottom of the street?
Andy Kerr
Lab
I am not sure about that part of the country, but I know that the new Sainsbury’s in Strathaven has enhanced the retail offer and the shops are surviving and...
Andy Kerr
Lab
Labour is not in a position to support this unacceptable policy, which was created by an SNP Government in crisis. As we have seen from leaked documents from...
The Deputy Presiding Officer
SNP
Order.
Andy Kerr
Lab
John Hannett is the leader of the workers on whom the SNP’s tax will have the greatest impact. He said:“The proposed levy is at such a high rate that it is l...
Patrick Harvie (Glasgow) (Green)
Green
Greens can support two policy objectives that might be addressed in small part: revenue raising to offset the worst of the Tory cuts in Scotland, of which I ...
The Cabinet Secretary for Finance and Sustainable Growth (John Swinney)
SNP
As I explained to Parliament when I set out the rationale for the draft budget for 2011-12, we have had to face tough decisions. The United Kingdom Governmen...
Duncan McNeil (Greenock and Inverclyde) (Lab)
Lab
Will the cabinet secretary take an intervention?
Mike Rumbles (West Aberdeenshire and Kincardine) (LD)
LD
Will the cabinet secretary take an intervention?
John Swinney
SNP
I give way to Mr McNeil first.
Duncan McNeil
Lab
How much of the £30 million tax take will go to small businesses?
John Swinney
SNP
Mr McNeil fails to understand the nature of the budget process. Interruption.
The Presiding Officer (Alex Fergusson)
NPA
Order.
John Swinney
SNP
If we want to provide a balanced budget to the Parliament, we must be able to afford all the priorities in it. The budget contains support for the small busi...
Gavin Brown
Con
Why was a business and regulatory impact assessment not undertaken? Did the cabinet secretary intervene personally to block that?
John Swinney
SNP
I made it clear that there was no need for such an impact assessment because the proposal will affect 0.1 per cent of the business property base in Scotland,...