Twelve retail representative groups and industry bodies have
jointly written to the Scottish Finance Secretary, MSP, asking her to introduce
a permanent business rates discount for all retail premises.
The retail industry in Scotland employs 235,000 people and
accounts for a fifth of business rates. The twelve organisations
represent retailers and others with a stake in the vitality of
Scottish high streets and retail destinations.
The collective call 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
retailers in England.
The joint letter was submitted to Ms Robison earlier this week.
The text of the letter was:
Dear Cabinet Secretary,
We are writing jointly ahead of the Scottish Budget to ask
that you introduce a permanent business rate discount for all
retail premises.
We fully recognise some of the positive decisions on business
rates the Scottish Government has taken over recent years
including more regular rates revaluations, ensuring Ministers
rather than Councils set the business rate and reliefs, as well
as the move not to apply fair work conditionality to eligibility
for business rate reliefs.
However, as you know in the UK Budget the Chancellor of the
Exchequer confirmed retailers in England will receive a
permanently discounted business rate from April. This 5p in the £
reduction will see stores down south receive roughly 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.
A thriving Scottish retail industry is good news for the
availability of flexible local jobs, investment in high streets
and town and city centres, and ultimately for tax revenues. If
the Scottish Government fails to act retailers here in Scotland
will miss out on a permanent business rate discount and existing
and new stores and high streets here will – by comparison -
become less viable locations to trade and invest in, with
consequence for the state of our retail destinations.
Continued investment in stores is essential to keep shops
viable and attractive to customers and to minimise the number of
shuttered shops. We don't want to see Scotland become a
materially more expensive place to operate shops as it would
likely shift investment to other parts of the UK and make
economic recovery here more challenging. It is not in the
interests of Scotland's economy for shop owners to be
incentivised to invest in Berwick-upon-Tweed over Balloch,
Bathgate, or Brechin.
Our organisations have a range of ideas on how Scotland's
business rates system could better support economic recovery in
the short and longer term. However, we collectively believe that
your Budget on 13 January needs to introduce a permanent business
rate discount for all retailers, one which is at least as
competitive as is planned for stores in England. This would
support retailers, the local job and career opportunities they
provide, the vitality of our high streets and town and city
centres, whilst delivering on our shared vision of making
‘Scotland the best place in the UK to grow a retail
business'.
Yours sincerely,
David Lonsdale, Director, Scottish Retail Consortium
Meryl Halls, Managing Director, Booksellers Association of
the UK & Ireland
Andrew Goodacre, Chief Executive Officer, British Independent
Retailers Association
Malcolm Harrison, Chief Executive, Company Chemists'
Association
Jim Winship, Director, British Sandwich & Food to Go
Association
Dr Hannah Shimko, Managing Director, Gift Card & Voucher
Association
Fran Barnes, Chief Executive Officer, Horticultural Trades
Association
Anthony Short, Executive Director, Music Industries
Association
Caroline Larissey, Chief Executive, National Hair &
Beauty Federation
Alan Anthony, Scotland Chair, Revo Community
Lesley Cameron, Chief Executive, Scottish Bakers
Dr Pete Cheema OBE, Chief Executive, Scottish Grocers'
Federation
