Scottish Retailers press Finance Secretary for business rate discount

The Scottish Retail Consortium (SRC) has written to the Scottish Government’s Cabinet Secretary for Finance, Shona Robison MSP, urging her to introduce a business rates discount for retailers in order to maintain the economic viability of our high streets. The call comes in the wake of last week’s UK Budget which announced retailers in England would be entitled to a 10 per cent discount on their business rate from April 2026.

 

SRC submitted its detailed Scottish Budget recommendations paper to the Finance Secretary in September. The SRC’s letter to the Finance Secretary is below:

 

Dear Finance Secretary,

 

Scottish Budget: business rate discount for retailers

 

Last week the Chancellor of the Exchequer confirmed retailers in England will receive a permanently discounted business rate from April and the size of the reduction. We estimate this will see stores down south receive a 10 per cent discount to their business rate. To their credit both the UK and Welsh governments have recognised retailers’ pay a disproportionate amount in business rates, with Wales set to reduce the business rate that retailers’ pay too.

 

As you know a thriving retail industry is good for the availability of local jobs, commercial investment in high streets, and ultimately for tax revenues. However, there is now a real risk that if the Scottish Government fails to act retailers will miss out on a business rate discount and existing and new stores and high streets here will – by comparison - become less viable and materially less attractive investment options from next Spring. Conversely, destinations elsewhere in Britain will become considerably more attractive and cost-effective locations to trade and invest in.

 

Retail trading is tough right now as evidenced by our Scottish Retail Sales Monitor which has only seen a 12-month average increase of 0.7 per cent. Continued investment in stores is essential to keep shops viable and attractive to customers and to minimise the number of boarded-up shopfronts. If it becomes materially more expensive to operate shops north of the border than elsewhere that’s likely to shift investment to other parts of the UK and make economic recovery here more arduous.

 

The Scottish Budget on 13 January is the opportunity to seize the moment and ensure all retailers in Scotland benefit from a competitive business rate from April. Otherwise Scotland’s retailers’, high streets, and town and city centres are likely to face the unwelcome consequences.

 

Scottish Ministers have proved fleet of foot on rates previously, for example delivering more regular revaluations and ditching the mooted surtax on grocery stores. Maintaining competitiveness on business rates would be good for retailers and the local jobs they provide and the communities and retail destinations they support through driving footfall. When a shop thrives so does the café next door, the restaurant down the street, and the town and city centre around it.

 

Maintaining competitiveness on business rates would also deliver on our shared government/industry vision of making ‘Scotland the best place in the UK to grow a retail business’.

 

Given this we implore you to back the economic viability of Scotland’s high streets in your Budget by introducing a permanent business rate discount for retailers from April which is at least as competitive as England’s discount.

 

We would welcome an early opportunity to discuss this with you and better understand your intentions.

 

Yours sincerely,

 

David Lonsdale

Director, Scottish Retail Consortium

 

ENDS

 

Note: SRC’s Scottish Budget recommendations paper is available here: scottish-budget-2025_v2.pdf