Staff have been offered jobs at the Kirkcaldy store or have already managed to find alternative employment.

Councillor Mike Scott-Hayward said Scotland’s business rates system was “destructive”.

He said, “It is an appalling fact that business rates in Scotland not only put us at a disadvantage compared to England, but, because rates are unnecessarily high and punitive, they destroy jobs.

“Business rates here are now set by the Scottish Executive.

Mr Scott-Hayward added rates are about 9% higher here than in England and criticised the Scottish Parliament for destroying the “uniformity and equity across the UK.”

He also said the Executive had been given the power “to punish Scottish businesses.”

He said, “They have used it. Here in North East Fife, we will see a St Andrews store, which has been a familiar feature for 22 years, close next month. St Andrews business rates have beaten them.

“Liberal Democrats bemoan the lack of opportunity for young families in St Andrews yet they support the coalition in Edinburgh which imposes the burdens now about to drive business away from St Andrews.”

He also pointed at car parking charges. “The Wilkies store in Kirkcaldy has had better trade. To rub salt in the wound, there is free car parking in Kirkcaldy. In St Andrews, Fife Council does it damnedest, with huge support from some anti-car Lib Dems, to make life difficult for motorists.

“Time and again I have proposed a change to the business rates system. But, until there is a change of regime locally, in Scotland and the UK, family business ventures are doomed to struggle to survive.”