The Scottish Grocers’ Federation (SGF) has labelled the pre-election budget “lukewarm”, while the Scottish Retail Consortium (SRC) claimed it fell short.
SGF deemed the 15% business rates relief for retailers announced in the Scottish Budget as “a success” and also welcomed a reduction in the basic rate ‘poundage’ from 49.8p to 48.1p. But the trade body believed more should have been done to tackle retail crime, beyond Scotgov maintaining £3m funding for Police Scotland’s Retail Crime Taskforce (RCTF).
Conversely, SRC was disappointed that the Scottish business rates reduction for retailers failed to match the discount on offer to English retailers, while it was appreciative of the continued funding for the RCTF, given Scotgov’s spending constraints.
SGF Chief Executive, Dr Pete Cheema, said:
“Since Covid, SGF and our partners across the Scottish retail sector have been urging the Scottish Government to match reliefs for retail business provided elsewhere in the UK. This year, the Finance Secretary has finally taken a step in the right direction.
“Convenience stores and local shops are at the heart of their communities and are part of the lifeblood of our economy. However, Scottish businesses have consistently paid more, putting many businesses at a disadvantage to their counterparts south of the border.
“Nonetheless, one area where much more investment is needed, is tackling the devastating impact of retail crime. Police Scotland’s Retail Crime Taskforce has done remarkable work in its first year, with a very limited budget. Now that resource needs to be expanded so that it can deliver a genuine and meaningful long-term change.”
David Lonsdale, SRC Director, said:
“Scottish Ministers seem to have their heart in the right place by providing a limited business rate discount for retail and hospitality businesses; but we fear they have significantly stumbled on the detail. At first glance, the cap on the relief which can be claimed means it falls well short of the permanent business rate discount on offer to retailers in England.
“Medium-sized and larger retailers underpin the vitality of our high streets and town and city centres. Those businesses drive footfall and account for a large share of retail employment. By fumbling the chance to adequately match England’s more competitive rates regime we risk becoming materially less attractive as a location for investment. We fear this will have unwelcome consequences for retailers’ investment plans and the health of Scotland’s retail destinations.
“It’s worth noting Ministers have clearly listened to our representations and acted positively in straightened financial circumstances to continue the £3million funding for the Retail Crime Taskforce. Retail crime remains a blight on communities across Scotland and this investment can help Police Scotland build on the positive start this year.
“Whilst there appear to be no new significant burdens on retailers, we believe there was scope to do much more at a time when retail sales and footfall are in the doldrums. Regrettably the Budget falls short of the industry and government’s shared ambition of making Scotland the best place in the UK to grow a retail business.”
Meanwhile, the Scottish Wholesale Association (SWA) voiced its support of the business rates changes, but pushed for further improvements to support the country’s food and drink supply chain.
SWA chief executive Colin Smith said:
“The Scottish Wholesale Association welcomes the steps taken in today’s Budget to support businesses, particularly the movement on business rates which will help stabilise costs across parts of our supply chain.
“These measures matter, especially for the SME and family-run Scottish wholesalers which continue to absorb rising wage, energy and fuel costs, and for those operating in rural and island communities where distribution challenges are even more acute.
“But this remains a cautious Budget, and caution alone won’t address the pressures facing Scotland’s food and drink supply chain. When costs rise anywhere – from producers to hospitality and retail – wholesalers feel it first and hardest.
“To maintain confidence to invest, our sector needs targeted support that backs innovation, sustainability and the skilled workforce we rely on – the very priorities we have set out in our election asks for the next Scottish Parliament. Greater clarity and confidence in the long-term policy direction will be essential if wholesalers are to plan, invest and modernise at the pace Scotland needs.
“We’ll continue to work closely with the Scottish Government, but it’s vital that today’s commitments translate into long-term action. Wholesalers occupy a vital, central role in Scotland’s food security and economic growth – in cities, towns, rural areas and islands – and with the right conditions we can continue supplying and supporting communities across the country.”
