SRC urges Scottish policymakers to make a permanent reduction in business rates
THE Scottish Retail Consortium (SRC) has called on the Scottish Government to make a permanent reduction to business rates in its Budget decision for 2026/27.
The SRC has said that retailers across the country have warned them about the risks and consequences for Scotland’s high streets from inaction on business rates and claim it could have a massively detrimental impact on Scotland’s retail destinations.
David Lonsdale, director of the SRC, said: “The retail industry and devolved government have a shared goal of making Scotland ‘the best place in the UK to grow a retail business’. It’s imperative the Finance Secretary sets out in the Scottish Budget a concrete plan to permanently reduce the business rate applied to retailers of all sizes.
“Failure to do so could see consequences for commercial investment and for the condition of Scotland’s high streets, as destinations elsewhere in GB become considerably more attractive and cost-effective locations to trade and invest in.”
Despite a freeze on the Basic Property Rate and the ditching of the surtax on grocery stores in last year’s Scottish Budget, the SRC has said that the business rate remains “onerous” for Scotland’s retail destinations and remains at a 26-year high for the channel.
The SRC also claimed that Scotland continues to levy a higher business rate on medium-sized and larger premises than is the case in England and that, in the last three years, Scottish stores have missed out on rates relief available to their counterparts in England and Wales.
While the UK Government is set to deliver its Autumn Budget statement on Wednesday 26 November, the Scottish Government’s own budget is set to be delivered on 13 January 2026. At the time, the Scottish finance minister, Shona Robison, claimed the decision to delay the Scottish Budget to next year came as a consequence of the lateness of the UK Autumn Statement.
Lonsdale said: “Retail trading is tough right now. Continued investment is essential to keep shops viable and attractive to customers. If it becomes materially more expensive to run shops north of the border than elsewhere that’s likely to shift investment to other areas. It’s up to Scottish Ministers and MSPs to ensure Scotland remains competitive.”
