Swinney eyes supermarket tax oasis on cigarettes and alcohol

SNP eye up ways of trying to balance the books but business leaders hit out at plans for 'unfair cash grab'

- PAUL HUTCHEON

JOHN Swinney is set to hit supermarkets with a booze and fags tax to help fill a £1billion budget black hole.

The SNP government is considering increasing business rates for large retailers that sell cigarettes and alcohol.

But incensed business leaders last night called the idea an "unfair and unnecessary cash grab".

Swinney's administration recently outlined £500million of cuts to pay for public sector pay deals, while drawing down almost £500million from the sell-off of Scotland's offshore wind energy.

More pain is expected when Finance Secretary Shona Robison unveils a Grinch-like budget in December that could see her swing the axe again.

Income tax is already higher than in the rest of the UK and ministers are looking at other ways to increase revenue.

Humza Yousaf's short-lived administration, which included the Greens, looked at a "public health supplement" for large retailers as a way of generating extra cash.

Swinney has ditched key Yousaf policies but higher business rates for supermarkets and bigger shops remains on the table.

Discussions have taken place with the Scottish Retail Consortium and public health groups about how a supermarket tax could operate.