SRC reaction to apparent rescinding of rates parity pledge

The Scottish Government’s Finance Minister today told Parliament that Ministers remain committed to restoring parity with England on the Higher Property Business Rate but will only do so “when affordable”. This appears to walk back on the commitment in the 2021 SNP manifesto (p47) and subsequent Scottish Government ‘Framework for Tax’ (p21) to restore the level playing field with England on the Higher Property Business Rate “over the course of this Parliament.”

Commenting on the apparent rescinding of the timetable for restoring parity with England on the Higher Property Rate, a surtax which costs Scots firms £60 million annually, David Lonsdale, Director of the Scottish Retail Consortium, said:

“This apparent retraction of the timetabled commitment to restore the level playing field with England on the Higher Property Rate surtax is incredibly frustrating and troubling, more so given lingering concerns about Scotland’s relative economic underperformance compared to the UK as a whole and the pressing need to lift private sector investment. With Scottish Ministers having already ignored the recommendation of their own Barclay Review to end this Scotland-only surcharge by 2020, it’s dispiriting they won’t even commit to remove this before this Parliament ends despite it being a manifesto commitment.  

“There is no credible justification why firms operating from eleven thousand premises in Scotland are apparently thought to better placed to be forking out more in rates than firms in comparable premises in England. The surcharge only serves to make life tougher for those retailers affected by making it more expensive to maintain a shop presence on Scotland’s high streets. Ministers need to rethink their stance and urgently pursue a much more ambitious approach towards restoring the level playing field with England on the higher property rate.”