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
(scottish-budget-2025_v2.pdf)
- sent last week to Finance Secretary 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 falteringconsumer 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
Note: The Scottish Retail Consortium's Scottish Budget
recommendations paper is at: scottish-budget-2025_v2.pdf
