Shops occupying medium sized and larger premises in Scotland are
set to face £162 million more in business rates over the next
three years than their equivalent-sized counterparts down south,
according to the Scottish Retail Consortium (SRC).
The new financial year for business rates commences this
Wednesday (1 April). Smaller stores liable for the Basic and
Intermediate Property Rates will benefit from the Scottish
Government's new Retail, Hospitality, and Leisure sectors' rates
relief (RHL). This new RHL relief is very welcome, but the RHL
poundage rates will still be above those levied in England whilst
the amount that can be claimed will be capped, unlike in England.
In addition, the 2,296 shops in Scotland with a rateable value of
£100,000 or above will not be eligible for the Scottish
Government's new RHL rates relief. Instead, these shops will be
liable for the Higher Property Rate of 54.8p in the £ from 1
April whilst similar sized stores in England will pay 43p in the
£. As such these medium-sized and larger Scottish stores will be
paying out £54 million a year more than their England-based
counterparts.
The SRC says a more competitive business rates regime is central
to rejuvenating Scotland's high streets and town and city centres
and making them desirable locations for retailers to invest
in.
David Lonsdale, Director of the Scottish Retail Consortium, said:
“Scottish Ministers have made headway on business rates by
introducing the new Retail Hospitality and Leisure sectors' rates
relief. To their credit the Scottish Government has
recognised that retailers' pay a disproportionate amount in
business rates and the new rates relief is a positive step
forward.
“However, the new RHL relief falls well short of what is
required. The convoluted restrictions and cap on eligibility
means it won't benefit all stores and it will be less generous at
every level compared to the relief on offer to retailers in
England from 1 April. Unfortunately, the rates relief won't
even apply to medium-sized and larger stores which are liable for
the Higher Property Rate. These shops will pay a business rate
substantially above that of similarly-sized counterparts down
south over the next three years.
“As it stands Scotland risks becoming a materially less
competitive place to operate shops and our fear is this could see
a shift in investment down south. Continued investment
in stores is essential to keep them viable and attractive to
customers and to minimise the number of shuttered shops. It
is not in the interests of Scotland's economy for
shop owners to be incentivised to invest in Berwick-upon-Tweed
over Bothwell, Buckhaven, or Blairgowrie.”
“A far more ambitious approach is required from those political
parties seeking to form the next Scottish Government, one that at
the very least ensures a competitive level playing field with
England and which delivers on the industry's vision to make
Scotland the best place in the UK to grow a retail business.”
ENDS
Note 1: The £162 million over the next 3 years is extrapolated
from the Ministerial response to a recent written parliamentary
question: Written question and answer:
S6W-43360 | Scottish Parliament Website
Note 2: The Scottish Retail Consortium's High Streets
mini-manifesto is available at: src-high-streets-manifesto-2025.pdf
