Retailers seek bolder action on tax, business rates, retail crime
An unequivocal commitment to no new levies on retailers and a meaningful business rate reduction, alongside enhanced funding to combat shop thefts, should be at the heart of the upcoming Scottish Budget according to the Scottish Retail Consortium (SRC).
In its Scottish Budget submission – entitled Aisles of Ambition: Delivering Growth for Scotland’s Retail Industry - sent last week to Finance Secretary Shona Robison the leading business group says retail is a powerhouse industry facing tough trading conditions, an uncertain economic outlook, and spiralling costs and higher shop prices as a result of the last UK Budget.
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.
The SRC’s 12-page submission contains 17 recommendations aimed at supporting consumer spending, helping stores invest, tackling crime against retailers, and making the cost of operating government more affordable. It comes ahead of the expected unveiling later this year of the devolved administration’s £60 billion Budget for 2026-27 and Spending Review.
Specifically, the SRC is suggesting government should:
- Unequivocally commit to no new levies on retailers.
- Address any gap in Scottish Government finances through spending restraint and cutting the cost of operating government rather than tax rises which stymie economic recovery.
- Ensure all retailers in Scotland benefit from a meaningfully more competitive business rate than England.
- Take a sceptical approach to any further tax devolution to councils which might affect consumer spending or increase retailers’ costs.
- Narrow income tax divergence between Scotland and the rest of the UK.
- Enhance the funding for the Retail Crime Taskforce to prevent shoplifting, deter abuse towards shopworkers, and aid the vitality of high streets.
The parliamentary arithmetic suggests that more than one political party will have to support the Scottish Budget for it to pass.
David Lonsdale, Director of the Scottish Retail Consortium, said:
Retailers make a significant economic and social contribution to Scotland but are straining to trade profitably against a backdrop of flatlining retail sales, flaccid levels of shopper footfall, and faltering consumer confidence. Meanwhile, government-mandated costs on retailers are mounting, with the rises in non-domestic rates and employers’ national insurance contributions adding £200 million to Scottish retailers’ outgoings this year.
Compounding the costs crunch retailers face must be avoided. Last year’s Scottish Budget contained some positive announcements however we’re seeking bolder action this time to support consumers, helps retailers invest in retail destinations, further tackle retail crime, and cut government running costs.
The focus has to be on lifting private sector growth and making Scotland the best place in the UK to grow a retail business. We appreciate that politicians will have an eye on the coming election. However, it’s imperative that the devolved administration and MSPs from across the Scottish Parliament work collegiately to pass a pro-growth Budget. After all, an expanding economy is a prerequisite for raising living standards, more well paid jobs, and for generating the revenues to allow policymakers to enact social and environmental change.
ENDS
