Exclusive:'Extremely disappointing': SNP under fire for ditching public health levy plans in Scottish Budget

Ahead of the Budget, John Swinney said his Government was considering reintroducing a public health supplement for large retailers that would have seen a levy applied for alcohol and tobacco sales.

But in Wednesday’s Budget, Finance Secretary Shona Robison made no mention of the policy in her speech.

Budget documents published by the Scottish Government have confirmed that “following exploratory discussions with stakeholders and taking into consideration cumulative burdens, including UK government increases in employer National Insurance contributions, we have no plans to introduce this at this time”.

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But a charity has criticised the decision and demanded SNP ministers think again about ruling out the policy.

Laura Mahon, deputy chief executive of Alcohol Focus Scotland, said: “It is extremely disappointing that the Scottish Government has indicated that they have no plans to reintroduce the public health supplement on large retailers at this time.

“This year, alcohol-specific deaths reached a 15-year high. Alcohol-related liver disease is responsible for most of these deaths, with 805 people lost to this disease last year.

“Re-introducing a public health supplement could save lives by funding the scanning equipment and staff training needed to catch this disease early. It would also substantially reduce the pressures on our NHS, as highlighted just this week by Audit Scotland.”

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Ms Mahon added: “Over 90 per cent of revenues raised through the reintroduction of the public health supplement on large retailers would come from supermarkets, who make billions in profit each year.

“We don’t believe that it is fair that large retailers should make substantial revenue from selling health harming products while the taxpayer picks up the cost through funding our already strained NHS.

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“During the upcoming Budget negotiations, we strongly urge the Scottish Government to reconsider this decision and show that they are serious about tackling what they themselves have described as an alcohol emergency.”

The Scottish Greens, who are weighing up their support for the Budget, have called for a change of heart from SNP ministers.

Greens MSP Gillian Mackay said: “The Government had a chance in this year's Budget to prove that they were taking this seriously and to ensure everyone has access to the life-saving support they need, but instead they’ve ignored it again.

“We can tackle alcohol and tobacco misuse in Scotland, but only if we have funded services in place to support individuals, their families, and communities in need. I urge the Government to urgently rethink, and to introduce a levy on retailers now.”

But retailers have welcomed the Scottish Government ditching the policy.

David Lonsdale, director of the Scottish Retail Consortium, said: “The Scottish Government has seen the light and turned away from the damaging and retrograde idea of introducing a business rate surtax on grocery retailers.

“This ill-considered measure would have unfairly penalised food and drink shops who already pay very significant amounts in rates and who face a business rate already at a 25-year high.

“Removing this surtax lifts a damaging cloud from the investment horizon and allows grocers to more favourably assess Scotland as a nation with investment potential.”

The Scottish Government has been contacted for comment.