Independent Scots 'Will Pay More For Food'

The cost of the weekly shop will be pushed up for Scottish consumers if they choose independence in next year's referendum, supermarkets have warned.

Morrisons told Sky News the increased cost was down to a number of taxes to be imposed on Scottish retailers which would not apply to those in England.

CEO Dalton Philips said: "If the regulatory environment was to increase the burden of the cost structure on business, that would potentially have to be passed through to consumer pricing.

"Why should the English and Welsh consumer subsidise this increased cost of doing business in Scotland?"

Morrisons cited the higher costs of transport and distribution as well as the imposition of the public health levy by the Scottish government.

UK supermarkets currently absorb the extra costs in the interests of fairness to customers across the UK, but may rethink that policy that if Scotland becomes independent.

One executive told The Financial Times "We would treat it as an international market and act accordingly by putting up our prices."

Andy Clarke, chief executive of Asda, told the FT: "We believe in fairness, so the price the customers pay for a pint of milk or loaf bread is the same regardless of where they live in the UK.

"However, the cost of doing business in different parts of the country does vary.

"A 'Yes' vote in 2014 could result in Scotland being a less attractive investment proposition for business and put further pressure on our costs."

The Scottish government, however, says there is "no reason" for retail prices to rise.

A spokesman told the FT that plans for lower corporation tax and fuel duty would make Scotland "more competitive and less costly" than at present.

:: Watch Sky News live on television, on Sky channel 501, Virgin Media channel 602 and Freeview channel 82.

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