Some success on business rates, but more still to be done
INDUSTRY bodies across the retail sector have broadly welcomed the Scottish Government‘s decision to reduce business rates, but many have said the Budget will not go far enough.
The Scottish Government has made the decision to introduce a 15% relief on business rates for convenience retailers across the sector, alongside a reduction in the basic rate ‘poundage’, from 49.8p to 48.1p.
The new follows on from a joint campaign by Scottish retail associations to match reliefs seen south of the border.
Additionally, £3million in funding was also renewed for the Retail Crime Taskforce, aimed at reducing the impact of retail crime on business and communities across Scotland.
The Scottish Grocers’ Federation (SGF) has broadly welcomed these moves from the Scottish Government, claiming retailers have been “brought in from the cold” on business rates, but was disappointed that further efforts have not gone towards tackling retail crime.
Pete Cheema, chief executive at the SGF, said: “Since Covid, SGF and our partners across the Scottish retail sector have been urging the Scottish Government to match reliefs for retail business provided elsewhere in the UK. This year, the Finance Secretary has finally taken a step in the right direction.
“Convenience stores and local shops are at the heart of their communities and are part of the lifeblood of our economy. However, Scottish businesses have consistently paid more, putting many businesses at a disadvantage to their counterparts south of the border.
“Nonetheless, one area where much more investment is needed, is tackling the devastating impact of retail crime. Police Scotland’s Retail Crime Taskforce has done remarkable work in its first year, with a very limited budget. Now that resource needs to be expanded so that it can deliver a genuine and meaningful long-term change.”
Meanwhile, the Scottish Retail Consortium (SRC) believes that whilst Scottish ministers “have their hearts in the right place”, there was little in the Scottish Budget to support medium and larger retailers who make up the bulk of Scotland’s high streets.
David Lonsdale, director of the SRC, said: “By fumbling the chance to adequately match England’s more competitive rates regime we risk becoming materially less attractive as a location for investment. We fear this will have unwelcome consequences for retailers’ investment plans and the health of Scotland’s retail destinations.
“Whilst there appear to be no new significant burdens on retailers, we believe there was scope to do much more at a time when retail sales and footfall are in the doldrums. Regrettably the Budget falls short of the industry and government’s shared ambition of making Scotland the best place in the UK to grow a retail business.”
In a similar vein, the Scottish Wholesale Association (SWA) has labelled the Scottish Budget as a cautious one, and has warned that caution will not see the sector through these challenging financial times.
Colin Smith, chief executive at the SWA, said: “To maintain confidence to invest, our sector needs targeted support that backs innovation, sustainability and the skilled workforce we rely on – the very priorities we have set out in our election asks for the next Scottish Parliament. Greater clarity and confidence in the long‑term policy direction will be essential if wholesalers are to plan, invest and modernise at the pace Scotland needs.
“We’ll continue to work closely with the Scottish Government, but it’s vital that today’s commitments translate into long‑term action. Wholesalers occupy a vital, central role in Scotland’s food security and economic growth – in cities, towns, rural areas and islands – and with the right conditions we can continue supplying and supporting communities across the country.”
