Minimum Unit Pricing

The Alcohol (Minimum Pricing) (Scotland) Bill was introduced on 31 October 2011.  

Whilst SGF accepts that the parliamentary arithmetic is such that the Minimum Unit Pricing Bill will become law we have, nonetheless, been raising our concerns about the proposed legislation in written and oral evidence submissions to Committees in the Scottish Parliament and through individual parliamentary meetings with MSPs. 

So, what are the concerns? 

Firstly, we are concerned about the disproportionate impact a minimum unit price will have on low income and moderate drinkers.The Scottish Government has singularly failed to model the impact of the policy on different income groups and a report by the authoritative Institute for Fiscal Studies concluded that “a minimum unit price would have a larger effect on low-income households.” 

The impact the policy will have on those already addicted to alcohol and on heavier drinkers, consuming products which will be left untouched by a moderate minimum unit price, is questionable.As is the potentially devastating impact the legislation will have on own-label products. 

The suggestion in the Financial Memorandum accompanying the Bill - that there could be an increase in the Licensing Fee in order to cover any additional costs for local authorities arising from the new law - is objectionable and could be an additional cost to the Social Responsibility Levy which Nicola Sturgeon has stated would be used to claw back any retail profits from minimum pricing. 

SGF is also concerned that for all of the Scottish Government’s talk of increased profits for the retail sector the vast majority of any extra profit – after wholesalers and producers take their slice – will, as research suggests, end up in the pockets of the large multiples which not only sell a greater proportion of cheaper products but also have a range of compensatory measures at their disposal with which our members cannot compete.This is a vitally important point when reviewing licensing fees and considering a social responsibility levy. 

Minimum pricing may also result in a proliferation in cross-border and internet sales.Some of the larger multiples have already proven how easy it was for them to undermine the 2010 Alcohol Act through online sales, a practice which could be exacerbated by minimum unit pricing.

Finally, we must take not of the considerable and informed opinion which has questioned the legality of the Bill within the parameters of EU law and other international trade obligations.  The possibility that our members use their valuable time and resources to comply with the legislation only for it to be struck down at a later date would be a preposterous situation. 

Business Rates

Click on Scottish 2012-13 Business Rates Deferral Scheme for more information and an application form.

In his Autumn Statement the Chancellor confirmed that the increase in 2012-13 business rates bills for businesses in England and Wales would be based on the 5.6 percent increase arising from September’s irregularly high RPI multiplier.  

Disappointingly the Cabinet Secretary for Finance, John Swinney MSP, followed suit and confirmed on 8 December that the 2012-13 business rates poundage will be 45p meaning a 5.6% increase next April in Scottish business rates. 

Given that this is an exceptionally difficult period for the retail sector with falling sales, faltering consumer confidence and considerable increases in overhead costs, SGF saw this as a missed opportunity.

The Scottish Government has already signalled, on numerous occasions, its desire to stimulate economic growth through cutting corporation tax – an economic lever over which it currently has no control.  This was, therefore, an opportunity for the Scottish Government to apply the same principle to business rates – a lever over which they do have control. 

SGF Healthy Living Programme

The SGF Healthy Living Programme was established in 2004 by Robert Wiseman Dairies with the support of the Scottish Government and the five main convenience store operators in Scotland at the time – Aberness, Botterills, C.J. Lang & Son, David Sands and Morning, Noon and Night. Its objective was to encourage convenience stores to develop the range of fresh produce and healthier products they offer in their local stores, to help improve the eating habits of people living in Scotland.

Following the tremendous success of the pilot scheme a business plan was developed to take the programme forward. The programme continues to receive the support of the Scottish Government who recognised the unique role convenience stores play in spreading the healthy eating message, particularly in neighbourhoods with low levels of car ownership and limited public transport. Together with the substantial inward investment of the retailers themselves, the programme has developed to include 600 stores.

The key success of the Programme has been its ability to improve access to and take–up of affordable healthier food options, helping to drive forward long-term changes towards a healthier Scottish food culture whilst providing an economic benefit to retailers.

More information on the SGF Healthy Living Programme is available on the information sheet below:

Healthy living 2leaflet

To find out more about the SGF Healthy Living Programme contact:

SGF Tel: 0131 343 3300 E: This e-mail address is being protected from spambots. You need JavaScript enabled to view it.

VAT

VAT is a tax on consumer expenditure. it is collected on business transactions, imports and acquisitions. Most business transactions involve supplies of goods and services.

VAT is payable if they are:

• Supplies made in the UK or the Isle of Man
• by a taxable person
• in the course of a business
• are not specifically exempted or zero-rated VAT Rates

There are 3 rates of VAT

• a standard rate, currently 20%
• a reduced rate, currently 5%
• a zero rate

From April 2010, if you have an annual VAT exclusive turnover of £100,000 or more you will have to do your VAT returns online and pay your VAT electronically. Also, if you register for VAT from 1 April 2010 onwards, you’ll have to file online from the start, whatever your turnover.

Doing your return online also helps reduce errors, provides automatic calculations and with an on-screen acknowledgment that it’s been received you don’t have to worry. What’s more, its available 24 hours a day, seven days a week, so you can do your return at a time that suits you.

If you’re using HMRC Online Services for the first time, you will have to register for an online account.

For more information go to http://www.businesslink.gov.uk/vat.

For further help, watch the video guide on the basics of VAT at http://www.businesslink.gov.uk/hmrctaxhelp.