Five leading Business Improvement Districts have added their voices to that of the Scottish Retail Consortium in calling on Scottish Government and MSPs to introduce a permanent business rate discount for all retail, hospitality, and leisure premises.
The joint plea comes ahead of the unveiling of the Scottish Government’s Budget on 13 January and in the wake of the UK Budget, which introduced a permanent business rate discount for retail, hospitality, and leisure premises in England.
The five Improvement Districts cover the cities of Aberdeen, Edinburgh, Glasgow, Inverness, and Stirling and each has a significant stake in the success of their retail, hospitality, tourism, and leisure sectors. Together these sectors employ 457,000 Scots across the country.
In an open letter to MSPs and Scottish Ministers they write:
Dear MSP,
Permanent business rate discount for all Retail, Hospitality and Leisure
Our ambition is for Scotland’s cities and towns to continue to be great places to do business.
However, the UK Budget has shifted the goal posts. Retail, Hospitality and Leisure businesses in England will receive a permanently discounted business rate from April. This will see a 5p in the £ discount to their business rate, which roughly equates to a 10 per cent discount.
Our cities and towns are the backbone of regional economies and communities across Scotland. The everyday economy drives footfall and provides local and flexible jobs and career opportunities for hundreds of thousands of Scots. If the retail, hospitality and leisure sectors in Scotland miss out on a permanent dedicated business rate discount we fear this will have tangible consequences for our city and town centres. If locations such as these become less viable to trade profitably that will affect commercial investment and jobs and make economic recovery more challenging.
As our regional economies and places adapt to a new economic model in straitened times there remains a critical need for continued investment. Creating the best investment conditions for retail, hospitality and leisure premises is vital to keeping these businesses attractive to customers, supporting the wider local business ecosystem, and to minimise the number of empty units and boarded-up premises on our high streets. Scotland must not become a materially more expensive place to operate as it would likely shift investment to other parts of the UK which is not in our collective interest.
We know there is a range of views on reforming business rates. However, we are united in asking Parliamentarians ahead of the Scottish Budget to maintain competitiveness and introduce a permanent business rate discount for all retail, hospitality and leisure premises; one which is at least as competitive as is planned for England. This would help deliver on pledges about business rates competitiveness and support commercial investment and growth in our city and town centres and regional economies.
Yours sincerely,
David Lonsdale, Director, Scottish Retail Consortium
Adrian Watson, Chief Executive Officer, Aberdeen Inspired BID
Roddy Smith, Chief Executive, Essential Edinburgh
Danielle McRorie-Smith, Executive Director, Go Forth Stirling BID
Lorraine Bremner McBride, Director, Inverness Business Improvement District
Kyron Keogh, Chair, Let’s Go Glasgow BID
