We’ve just been in the season of giving and goodwill. However, it appears the Scottish government forgot that in its recent budget. Certainly from a convenience sector perspective, anyway. The sense of disappointment is palpable.
The Scottish finance secretary had been urged to ensure that 40% reliefs on Non-Domestic Rates, announced for retail businesses south of the border, was passed on to Scottish retail. However, that didn’t happen. So it failed to recognise the need to support local stores and small businesses across Scotland.
Let’s be clear. Convenience stores already operate in just about every postcode, providing essential goods and a growing range of services, secure and flexible jobs, and ongoing investment in technology, productivity and people.
The government must recognise that the sector has great potential to drive growth across the Scottish economy. While we welcome the protection afforded to the Small Business Bonus Scheme and the freeze on the basic rate, the overall lack of support is damaging.
Investment in tackling retail crime is not enough
The Scottish government also announced that it would allocate £3m towards retail crime. That is a drop in the ocean when you consider that the average cost of retail crime per store, per year, is £12,164, which is approximately £62.9m in Scotland. On top of this, the latest figures from the chief statistician highlight a staggering 25% increase in shoplifting crimes this year, up 70% from September 2020. The only solution is emergency funding for the police to get to grips with this.
The New Deal for Business, which continues to be referenced by the Scottish government, is of value to retailers only if they feel they are being listened to, and crucially, there is meaningful action that supports them to prosper and to play their part in delivering sustainable economic growth into 2025 and beyond.
Read more of our expert opinion on the independent retail sector
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