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Councils call for tax on large supermarkets

A group of town halls have urged the government to tax major out-of-town supermarkets to help fund upgrades to local shopping areas.

Twenty councils want a so-called "Tesco tax" to raise up to £400 million a year.

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Tax on supermarkets 'would hit the poor hardest'

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.

The Government said an extra tax on supermarkets would hurt the poor. Credit: Sean Aidan/Eye Ubiquitous/Press Association Images

"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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