That supermarket levy

I've sent this to a local Food Network newsletter. The LibDems appear to have removed the key part of the motion that went to Bristol City Council......


That 8.5% levy on supermarkets campaign


'Local Works' (http://localworks.org/pages/supermarkets) have started a campaign to try and get an additional levy imposed on large supermarkets. Northern Ireland has already done this, and the campaign seeks to extend its coverage to the rest of the country. If enacted, supermarkets with a business rate of over half a million pounds pa would be asked to pay an additional 8.5% levy.

Applied to Bristol, there are 12 supermarkets affected, and this would raise an additional £1.6m pa. (There are some issues to resolve - for example those which are part of Business Improvement Districts' already pay some additional levy).

The mechanism they wish to use is the Sustainable Communities act - and to do it by getting a council to make a submission.

I don't intend to go into any detail about the rationale behind this - the benefits of local shops over supermarkets seem to me to be clear - in terms of local sourcing, how long money stays in the local economy, shorter supply chains, less transportation, more local jobs, and a change from driving to a supermarket to walking or cycling to a local shop. 'Local Works' go into chapter and verse about it, and you either agree or you don't.

The moneys raised, as proposed by 'Local Works' would be used as follows:

'The revenue from this rate will be used to assist smaller local businesses, for example independent shops, and the local services that support the flourishing of these smaller businesses, for example local bus services.'

In other words, the campaign aims to redistribute some money from larger, wealthier business to smaller, local business.

Put this in context - in 2006 DTZ estimated the retail market in Bristol to be £622m and estimated it to grow to £655m by 2011. Something like 84-85% of that market is taken by supermarkets - which works out at around half a billion. If you include only the largest supermarkets, a 2010 study of 6 South Bristol supermarkets estimated there turnover at £190m - so for 12 you can assume £380 million. THis excludes what is called companion shopping. In other words, it is a levy of 1p in every £2 or £3 of supermarket turnover - quite a modest proposal.

In Bristol, Green Party councillor Daniella Radice submitted such a motion to the June full council meeting - asking it to support the campaign, and submit a proposal under the act. The LibDems submitted an amendment which replaced making a submission with asking for a report exploring options to come back to the council by September.

In other words, it has been booted into the 'short grass' and, possibly, the 'long grass'. (The author of this item used to be a councillor and is not sure that many requests for reports and updates to council meetings actually take place).

So what next?

If you support the idea behind the campaign, please register your support with 'Local Works'. Please also sign the petition on Bristol City Council's website (http://epetitions.bristol.gov.uk/epetition_core/community/petition/2289). And above all, make sure the council follows it through. Don't let it be forgotten.