In a preliminary response to the Deputy First Minister’s
Emergency Budget Review, David Lonsdale, Director of the Scottish
Retail Consortium, said:
On spending reductions
“It matters profoundly that that the Deputy First Minister
succeeds with his plans to reduce the cost of devolved
government. This will help militate against the need for future
tax rises on households or firms which could in turn stymie the
economic recovery.”
On the cost of doing business
“Unfortunately, there was little by way of immediate relief for
the costs crunch facing firms. The only fixed point in a world of
flux for retail seems to be rising supplier and
government-related costs which are difficult to absorb and add to
the pressure on shop prices. Hopefully, this can be addressed in
next month’s Scottish Budget. In particular, the business rate
set by Ministers remains onerous and has escalated to a 23-year
high. An inflation-matching hike in the business rate next Spring
would add £65 million to Scottish retailers’ rates bills, sapping
investment and making rejuvenation of our high streets and retail
destinations even harder.”
On the review of devolved regulation
“It’s encouraging that following our representations Ministers
appear to recognise that the deposit return scheme for drinks
containers needs amended in order for it to be a success, however
we await the detail to see whether the steps announced make a
tangible difference.
“The economic landscape has shifted markedly so it’s unfortunate
more isn’t being done to stem or at least pause the swathe of
regulatory interventions currently being implemented, which would
give retailers breathing space as they seek to focus on keeping
down prices for consumers.”
