Retailers have welcomed the deputy prime minister's decision to abandon legislation that would have introduced a new tax on development.

John Prescott's decision follows a sustained retail sector campaign against the proposed tax, primarily led by the British Retail Consortium (BRC).

The BRC's director of corporate affairs, David Smith, said: 'We are pleased that the government chose to listen to our concerns on this subject. Today's announcement to abandon legislation for a development tariff is a victory for the BRC's campaign, the retail sector and for all those with an interest in regeneration, job creation and sustainable development.' The tax had hampered supermarket growth to new areas and, as a result, multiples concentrated their efforts on increasing their profile back to the traditional high street ( Tesco Metro and Sainsbury's Local, for example).

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