The Scottish Retail Consortium (SRC) has written to the Scottish
Government's Cabinet Secretary for Finance, 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
