With the Scottish Budget due to be published tomorrow (13th January), the Scottish Retail Consortium (SRC) has reiterated calls for the government to put economic growth at the heart of its plans.
The leading trade association has called for the Scottish government to:
- Introduce a permanent business rate discount for retailers from April which is at least as competitive as England’s discount.
- Commit to increased multi-year funding for the Retail Crime Taskforce.
- Make an unequivocal commitment to no new taxes or levies on retailers.
- Avoid further tax devolution to councils which might affect consumer spending or increase the costs retailers’ face.
- Outline a plan for narrowing the divergence between Scottish and UK income tax rates for higher, advanced and top rate taxpayers.
Retail is Scotland’s largest private sector employer providing 228,000 jobs directly with thousands more in the supply chain. However, recent data shows retail sales struggling with shopper footfall becalmed.
Over the past six weeks, since the UK Budget, the SRC has assembled a formidable range of voices, forty in total, who have spoken up publicly in favour of a permanent business rate discount for all retailers in Scotland. This has included trade unions, leading retailers, trade associations, and business improvement districts.
David Lonsdale, Director of the Scottish Retail Consortium, said:
“Retailers are the heartbeat of many of our communities. Yet this last year saw retailers face the twin threats of middling sales performance and ever-increasing costs as both businesses and households struggled. That has left many shopkeepers walking a tightrope to remain viable. With the Scottish Government controlling many of the key economic levers, one bad budget could see us lose our high streets as we know them and lead to despair for the retail industry and other high street businesses.
“To avoid that the Government needs to build on some of the positive decisions from recent years. Ministers have proved fleet of foot on rates before, for example delivering more regular revaluations and ditching the mooted surtax on grocery stores, as well as shelving plans for fair work conditionality on eligibility for rates reliefs.
“The retail industry has outlined clear realistic policies we hope to see delivered by the Finance Secretary. Unless business rates are reduced we could see Scottish retailers carrying a heavier business rates burden than their counterparts down south with investment-sapping consequences for the health of our high streets and the jobs and opportunities they offer. That’s why we hope to see a permanent business rate discount for all shops which is at least as competitive as England. We’re also seeking increased funding to tackle retail crime and action to protect consumers from further tax rises. Times are tough on Scotland’s High Streets. This Scottish Budget must be part of the solution not the problem.”
