Tesco faces £400k bill plus interest after losing appeal

Britain’s biggest retailer has failed to avoid interest on a £400,000 late payment meant for new schools in East Lothian.

Tesco had argued it did not need to honour the developer fee, agreed in 2008, because it was no longer involved in the housing plan.

When this was thrown out, it tried to avoid almost two-and-a-half years of interest on the payment.

READ MORE: 1,500 shops face Christmas chaos with Tesco Booker strike

Its claim has now been dismissed a Scottish Government reporter, who noted that early developer contributions were important for building infrastructure with housing.

East Lothian Council insisted Tesco had been given a good deal over the land at its former store in Olivebank, Musselburgh.

It said that, if a similar agreement was struck today, the contribution request would be closer to £700,000.

The council is expected to apply interest to the overdue payment at 4% above the Bank of Scotland rate.

A spokesperson for Tesco told STV: “We are reviewing the decision.”

 Click here to sign up to Grocery Gazette’s free daily email newsletter

FinanceSupermarkets

RELATED POSTS

Leave a Reply

Your email address will not be published. Required fields are marked *

Fill out this field
Fill out this field
Please enter a valid email address.

Menu

SUBSCRIBE TO OUR NEWSLETTER

Sign up to our daily newsletter to get all the latest retail tech news and insights direct to your inbox.

  • This field is for validation purposes and should be left unchanged.