CHANCELLOR George Osborne says he does not agree with plans from Derby City Council's Labour leadership to create a new tax for large supermarkets.
If successful, it has said the move could raise up to £1.64 million a year in Derby – which could be used to protect services from cuts and help smaller shops.
It wants an 8.5% annual levy to be put on large supermarkets or retailers where the amount of annual rent which the properties would command on the open market is £500,000 or more.
But Mr Osborne said: "We need all our businesses to be growing and taking on jobs whether they be supermarkets, or JCBs, or small shops in Uttoxeter.
"What we need is for businesses to have confidence in taking people on. All I'd say is it's not a good idea to increase taxes on businesses because we want businesses to create jobs."
City council leader Paul Bayliss said: "In straitened times we need to look where people have the ability to pay and there's no doubt supermarkets are wealthy organisations."
Top of the "wish list" for Derbyshire's business leaders in Thursday's Autumn statement from Mr Osborne had been a two-year freeze in business rates, coupled with a review and reform of the existing system.
Mr Osborne defended the decision not to do this.
He said: "I not only announced a cap on business rates for big companies but also a £1,000 discount for smaller shops.
"For many, this won't be a freeze in business rates, this will be a big cut. Many retailers will be better off than they would have been with a freeze"
