New first minister Shona Robison has delivered the Scottish Budget for the 2025-26, with retailers to see a £3m boost in retail crime and prison funding, but no business rates relief.
Robison told parliament she aimed to deliver on “the needs of the people of Scotland”, bringing “people together, [creating] jobs…and [offering] hopes for the Scottish people”.
With almost £4.2bn set aside to be invested across Scotland’s justice system in 2025-26, an additional £3m has been made available to both help tackle retail crime, while funding for replacements of prisons HMP Inverness and Barlinnie will derive from £355m of capital budget.
David Lonsdale, director of the Scottish Retail Consortium (SRC), said: “Retail crime has become a scourge of communities across Scotland and we know that soaring levels of shoplifting is the main factor behind abuse and threats towards shop workers.
“The vital funding promised by the finance secretary is positive and must be used effectively to tackle persistent offenders and organised crime. Retailers are already taking action to make shops safer for customers and colleagues; they’ll warmly welcome this further support from the Scottish government.”
However, Scottish Grocers’ Federation (SGF) expressed concern over the amount set aside for retail crime. SGF chief executive Pete Cheema said: “While we welcome the additional direct support for Police Scotland, to get to grips with the devastating impact of retail crime, £3m will only go so far. Crime is the biggest issue facing our sector.
“Many stores are facing endemic levels of crime. Not just theft, but violence and abuse on a regular basis. Much more will be needed if we hope to reverse that trend before matters get even worse for staff and businesses. The announcement today may be too little too late and will only go so far to alleviate the pressure on businesses and the Scottish justice system.”
Scotland shoplifting rises 25% year on year
No business rates relief
Yet, while the majority of hospitality venues have been given 40% business rates relief, the same has not been applied for small retailers and leisure providers.
Federation of Small Businesses (FSB) Scotland said the Budget is a “bitter pill to swallow for small retailers”.
“The pressures they are facing are exactly the same as those in England and Wales, where relief has continued to be available since July 2022 – the last time such relief was offered in Scotland,” FSB’s Scotland policy chair, Andrew McRae, said. “As a result, many retailers will face yet more difficult decisions in the months ahead as they look to protect the future of their businesses and employees.”
He continued: “The extra investment in tackling retail crime through a new pilot initiative is a positive step. However, given the scale of the issue, and that the hoped-for cushion in the form of rates relief has failed to be extended yet again, it will offer little comfort to small Scottish retailers this December.
Robison said the Scottish government is taking the “sensible and sustainable route” on issues like business rates and taxation.
SGF called on the government to extend business rates support to include retail.
Cheema said: “We are very disappointed that the Scottish government has failed to recognise the need to support local retail and small businesses across Scotland. Convenience stores provide an essential local service for their communities, and they have a great potential to drive growth across the Scottish economy. For those reasons, while we welcome the freeze on the basic rate, we are calling on the finance secretary to extend the same support on business rates to include retail, to match what is being delivered to both retail and hospitality in England but only hospitality in Scotland.
No business rate surtax for retailers
Meanwhile, the SRC expressed relief that a business rate surtax was not introduced for grocery retailers, a previously considered proposal.
Lonsdale said: “The Scottish government has seen the light and turned away from the damaging and retrograde idea of introducing a business rate surtax on grocery retailers.
“This ill-considered measure would have unfairly penalised food and drink shops who already pay very significant amounts in rates and who face a business rate already at a 25-year high.
“These retailers are being clobbered by the UK government’s colossal increase in employer national insurance contributions which disproportionately impacts the retail industry, which has seen sales flatline for much of the year.”
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