During the keynote speech at its annual conference, the Scottish Licensed Trade Association (SLTA) also said a radical change to the rating system would close the gap between its members and the large chain supermarkets, which currently are exempt from contributing towards the proposed social responsibility levy on the alcohol trade.
Yesterday’s call marks the start of a campaign by the organisation, with Scotland’s main political parties saying they were receptive to discussing the proposals.
Small supermarket operators say they too would welcome a more level playing field with larger operators, claiming the rates they pay compared with the large multiples is unfair and disproportionate.
But retail sector representatives have said that alcohol only represents a small part of their turnover and that the two sectors were not comparable.
At yesterday’s conference in Crieff, Perthshire, the SLTA’s chief executive Paul Waterson proposed that “all sellers of alcohol in the country should share the rates burden equally”.
Historically, nightclubs and hotels in Scotland are rated on turnover. Their rateable values are very often 9% of their total turnover, creating a financial burden on the licensed trade, particularly venues run by individual operators. Supermarkets that also sell alcohol are rated on square footage, and rateable values often run at 1%-2% of turnover, which the SLTA said was inconsistent and unfair. Recent figures from the organisation show that less than 40% of all alcohol in the UK is sold through traditional outlets such as pubs, nightclubs, restaurants and hotels.
Of the rest, 84% is sold by the six big supermarkets. Tesco alone sells one-third of all off-trade alcohol.
Based on loose sales figures and the number of large supermarkets there are in Scotland, the SLTA said any change meaning that multiples would pay rates calculated on approximately 9% of their alcohol turnover would release about £100m into Government finances, which would help local authorities balance their books during the difficult economic climate.
It would also provide an alternative for those opposed to minimum pricing, as well as incorporating the supermarkets in the “polluter pays” proposal, where the licensed trade pays an additional levy for the damage caused by alcohol.
Mr Waterson, who has already begun sounding out key political figures in Scotland, said: “This change would bring in money which would help lighten proposed cuts in local spending, take the place of any social responsibility fee and offset the proposed hike in profits under minimum pricing proposals.”
Katie Mackie, of the Scottish Grocers’ Federation, said: “We understand the SLTA’s gripe here. Fairness in the rateable system is always a concern for our members. The fees small independent retailers have to pay to sell alcohol under the new act is determined by rates and there is no huge difference between them and large multiples.”
A Scottish Government spokesman said it had already acted to reduce the burden of taxation on all Scottish businesses, including the licensed trade, and that its Small Business Bonus Scheme and Rural Rate Relief Scheme was benefiting many pubs and hotels.
Scottish Retail Consortium director Ian Shearer said that while the current approach to business rates “has flaws”, it was “not clear using turnover would be better”.
One strike and you’re reported
Off-sales, supermarkets and pubs now failing just one sting by underage “test purchasers” are being reported to licensing boards by Scotland’s largest police force.
Four supermarkets in Glasgow have already been hit with two-week bans on selling alcohol and issued with written warnings after 16-year-olds managed to buy cider and tonic wine without being challenged by staff.
The move by the Glasgow board was also the first use of new powers available since the introduction of the Licensing (Scotland) 2005 Act. Strathclyde Police said it welcomed Glasgow’s tough approach.
