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Shop prices 'might rise' in independent Scotland Shop prices 'might rise' in independent Scotland
(35 minutes later)
Some of the UK's biggest supermarkets may consider increasing their prices north of the border, should Scotland vote for independence next year.Some of the UK's biggest supermarkets may consider increasing their prices north of the border, should Scotland vote for independence next year.
Both Asda and Morrisons said the cost of doing business was higher in Scotland than in the rest of the UK.Both Asda and Morrisons said the cost of doing business was higher in Scotland than in the rest of the UK.
The chief executive of Asda has also said an independent Scotland might be a less attractive place to invest.The chief executive of Asda has also said an independent Scotland might be a less attractive place to invest.
However, the Scottish government said proposed lower taxes would make Scotland more competitive.However, the Scottish government said proposed lower taxes would make Scotland more competitive.
"The cost of doing business in different parts of the country does vary," said Andy Clarke, the chief executive of Asda."The cost of doing business in different parts of the country does vary," said Andy Clarke, the chief executive of Asda.
Supermarkets face higher distribution costs in Scotland, in addition to a public health levy on shops that sell alcohol and tobacco.Supermarkets face higher distribution costs in Scotland, in addition to a public health levy on shops that sell alcohol and tobacco.
That levy, on business rates, costs the supermarkets around £30m a year.
"Why should customers in Cardiff subsidise those in Aberdeen?" a spokesman for Morrisons told the BBC."Why should customers in Cardiff subsidise those in Aberdeen?" a spokesman for Morrisons told the BBC.
'Pressure''Pressure'
Andy Clarke suggested Asda, owned by the US giant Walmart, might be more reluctant to expand in Scotland, if it becomes an independent country.Andy Clarke suggested Asda, owned by the US giant Walmart, might be more reluctant to expand in Scotland, if it becomes an independent country.
"A 'Yes' vote in 2014 could result in Scotland being a less attractive investment proposition for business and put further pressure on our costs," he said."A 'Yes' vote in 2014 could result in Scotland being a less attractive investment proposition for business and put further pressure on our costs," he said.
Neither Asda nor Morrisons said they had any plans to raise prices in an independent Scotland.Neither Asda nor Morrisons said they had any plans to raise prices in an independent Scotland.
However, the Financial Times said one of the big four supermarkets had confirmed it might put prices up.However, the Financial Times said one of the big four supermarkets had confirmed it might put prices up.
Tesco said it had no comment to make, and said it had not spoken to the Financial Times about the issue.Tesco said it had no comment to make, and said it had not spoken to the Financial Times about the issue.
Likewise Sainsbury said it had 'no comment'.
Under its plans for independence, the Scottish National Party (SNP) plans to cut corporation tax and fuel duty, to help lower the costs of distribution.Under its plans for independence, the Scottish National Party (SNP) plans to cut corporation tax and fuel duty, to help lower the costs of distribution.