SRC urges action in the ScotGov budget
THE Scottish Retail Consortium (SRC) has warned retailers could be facing a £13million hike in business rates in the new year.
The Office for National Statistics Consumer Price Index for September found that inflation stood at 1.7%. This figure is often what UK ministers look at when it comes to calculating business rates.
Should this be the case for the incoming financial year, the SRC has said retailers could potentially face an extra £13million on their annual business rates bill.
The SRC has noted that the Scottish business rate is already at a 25-year high and a potential inflation-linked uplift in costs could push this number even higher.
The concerns come against a bleak backdrop for the sector as sales continue to flatline and retailers face greater struggles when it comes to running their stores, including new legislation set to come in 2025, such as the disposable vape ban.
The SRC has urged the Scottish Government to consider its own budget plans carefully for the financial year 2025-26, so Scottish stores aren’t left to pick up a massive bill in the coming months. The Scottish Budget is set to be announced by Shona Robison on 4 December.
David Lonsdale, director at the SRC, said: “With the business rate already at a 25-year high, a far more ambitious and coherent approach is urgently required, one which views rates as a means of stimulating commercial investment in retail destinations rather than squeezing yet more tax revenue. Increasing taxes further could exacerbate the problem.
“We hope Scottish ministers will act in the budget to focus on economic growth and help make Scotland the best place to grow a retail business in the UK, by ruling out any increase in the business rate and by shelving the mooted surtax on grocery stores.”
