Retail leaders push ScotGov to freeze business rates for 2023-24 in its winter budget
INDUSTRY leaders of Scotland’s retail sector have called on the Scottish Government to freeze business rates ahead of the winter budget.
Following announcements from both the UK and the Welsh Governments to freeze business rates for the financial year 2023-24, members of the Scottish Retail Consortium have pushed ScotGov to follow suit with its winter budget on 15 December.
David Lonsdale, director of the SRC, said: “Given the decisions taken in Wales and England, the bare minimum retailers should expect from Scottish ministers is they follow suit and similarly freeze the headline business rate poundage in the coming financial year.
“This would aid retailers with the costs crisis, help them keep down prices for customers and ensure that no more Scottish commercial premises than currently do end up paying a higher business rate than applies down south.
“Anything other than a freeze could see all shops as well as other ratepayers paying a higher business rate than applies in England; something which is surely unconscionable.”
David Thomson, chief executive officer at Food & Drink Federation Scotland, also urged the Scottish Government to illustrate its support for the retail sector come the winter budget after the Office for National Statistics revealed food inflation had now reached 16.5%.
He said: “The Scottish Government needs to use their powers to prioritise measures which will drive growth and cut the cost of doing business in the winter budget.
“This means being ruthless in dropping or postponing proposed laws which, if brought in, will hit the pockets of businesses and consumers.”
This latest call comes after the SRC co-ordinated a joint letter to John Swinney MSP – who is set to deliver the winter budget as Kate Forbes MSP continues her maternity leave – calling on him to rule out any uplift to business rates in the budget.
The letter was signed by 19 industry bodies including the SRC, the Scottish Wholesale Association and Food & Drink Federation Scotland.
The letter stated: “Our organisations have a range of ideas on how Scotland’s rates system could be improved. However, we collectively believe this practical measure to at least freeze the business rate requires to be taken in your upcoming Scottish Budget, which would be a positive step applicable to all commercial premises and help ease the burden at this difficult time.”
