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Shop prices 'might rise' in independent Scotland | Shop prices 'might rise' in independent Scotland |
(about 5 hours 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. | 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. |
Prosperous | |
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'. | Likewise Sainsbury said it had 'no comment'. |
Commenting on the reports, Scotland's Rural Affairs Secretary Richard Lochhead said: | |
"The reality is that independence will provide the means to create a prosperous economy and better business environment, one that will deliver benefits for consumers and retailers alike. | |
"Supermarkets operate in competition with each other, and you can be sure if one supermarket chain has higher prices - for whatever reason - then their competitors will not be slow to take advantage of that." |