A new analysis from the Scottish Retail Consortium suggests shops
in Scotland could see a £22.5 million hike in their business
rates bills from April.
It follows the publication earlier today of the latest ONS
Consumer Price Index which revealed that inflation increased to
3.5% last month. September's inflation rate is what UK Ministers
traditionally use to calculate their business rate for the coming
financial year. If Scottish Ministers follow suit as they very
often do - then retailers in Scotland could face an extra £22.5
million on their annual business rates bills from April 2027.
Retail accounts for almost a fifth of all business rates.
Despite the introduction of the new Retail, Hospitality and
Leisure sectors' relief earlier this year, that relief is less
generous at every level than England's equivalent scheme. Larger
Scottish stores aren't even eligible for RHL relief. As such
stores of all sizes in Scotland continue to pay a higher business
rate than their English counterparts.
Retailers have faced greater outlays over the last two years on
energy costs due to the conflict in Iran and a swathe of
government-mandated cost rises, including on employers' national
insurance contributions, above-inflation rises in the national
living wage, new packaging levies, and from this month new
restrictions in Scottish stores on the sale and placement of
foodstuffs high in fat, salt and sugar.
David Lonsdale, Director of the Scottish Retail Consortium, said:
A chunky £22.5 million uplift in the business rate is on the
cards for Scotland's retailers next Spring, unless action is
taken. If government and politicians are serious about wanting to
fix the cost of living then they need to focus on fixing the cost
of doing business, and so help retailers who are striving to
invest in their stores whilst keeping down prices for Scottish
households.
Piling yet more taxes onto retailers, on top of the swathe of tax
and regulatory burdens the industry has been lumbered with of
late, only serves to make it more difficult for retailers to
invest in our high streets, create job opportunities, and keep
down prices on shop shelves. In her upcoming Scottish Budget the
Finance Secretary should rule out any increase in the business
rate paid by retailers and deliver a level playing field with
England for all Scottish stores.
