Page last updated at 16:03 GMT, Monday, 5 March 2012

Local Government Committee

Watch live coverage of the Local Government and Regeneration Committee as it takes evidence on minor legislation which will provide the formula to allow the Public Health Levy or "Tesco Tax" to be implemented, at 10.15am on 7 February 2012.

Finance Secretary John Swinney confirmed his public health supplement would be levied against large retail properties which sell alcohol and are registered for tobacco sales, as his budget was passed in February.

He said about 240 retail premises - or 0.1% of all business premises in Scotland - would pay more.

But the SNP minister added that following talks with retailers he was going to reduce the amount paid by individual retailers and limit the length of time that the supplement would apply.

Mr Swinney said the change to the plan would reduce the estimated income by £15m to £95m over the three-year period up to 2015.

He believed that the reduction would be offset "in full" by the income generated through matching the English Large Business Supplement.

Local Government and Regeneration Minister Derek Mackay will give evidence on the The Non-Domestic Rates (Levying) (Scotland) (No. 2) Regulations 2012 .

Scottish Conservative MSP Margaret Mitchell has put down a motion to anull the minor legislation and thus stop the Public Health Levvy being raised.

Retail groups claim a new health levy due to come into force later this year will hit store profits by up to 10%.

A report by the Centre for Economics and Business Research (CEBR) argued that the tax will have a bigger impact on retailers than claimed by the Scottish government.

The tax imposed on the larger retailers selling alcohol and tobacco would be raised via a business rates supplement from April.

At the beginning of the meeting MSPs will take evidence on public services reform and local government from Dr Stephen Sinclair from Glasgow

Caledonian University; Professor Richard Kerley, Queen Margaret University and then from Joe Simpson from the Local Government Association.

Local Government and Regeneration Committee


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