THE Scottish Government has dismissed claims food will cost more if Scots vote for independence.

Supermarkets are understood to be considering ending the practice of absorbing the extra cost of doing business in Scotland if the country becomes independent.

Executives say trading in Scotland becomes more expensive through higher transport costs and government supplementary charges on business rates paid by large stores selling alcohol and cigarettes.

Firms usually absorb extra costs to comply with a national pricing policy for shops of similar size but, according to reports, stores such as Asda and Morrisons are concerned independence might put further pressure on costs.

A spokesman for the Scottish Government said there was no reason for retail prices to rise if Scots voted to leave the Union.

Proposals for an independent Scotland include plans for lower Corporation Tax and fuel duty to cut transport costs, meaning that "Scotland would be more competitive and less costly than at present", the spokesman said.