An extra tax on big supermarkets would hit the poorest families hardest, the Government has said.
The Department for Communities and Local Government has rejected calls from 20 local authorities for a new levy on supermarkets to help revitalise local shopping areas.
"Imposing new, additional taxes on supermarkets will push up the price of food and the cost of living, hitting low-income families the hardest," a DCLG spokesman said.
He said there were "much better ways to support small shops".
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