Finance Secretary mustn’t flub chance to cut retailers’ business rates following Chancellor’s move

In a preliminary response to the UK Government Budget, David Lonsdale, Director of the Scottish Retail Consortium, said: 

“After last year’s Budget battering Scottish retailers will be relieved the 2025 iteration appears to have little which will immediately make trading harder. Nonetheless, there was little to be excited about. The economy remains in something of a funk, with economic growth decidedly modest but underwhelming and consumption growth set to average around one per cent in 2025 and 2026, before a miserly rise to around 1.75 per cent by 2029. With Scottish retail sales growth over the last twelve months flatlining at 0.7 per cent there seems little sign that consumer spending will bounce back soon.  

 
“The most significant announcement from a retail perspective was of a permanently lower business rate for most English shops; with stores seeing reductions of up to ten or twenty per cent in their business rate. When allied to the recent Welsh Government announcement to reduce retailers’ business rates there is now a real risk Scotland will become a substantially less attractive investment option from next April. The onus is on the Finance Secretary to seize the moment to reduce rates for all retailers in Scotland in her January Budget. If she flubs the chance then Scotland’s retailers’ and high streets are likely to face the unwelcome consequences.”