The retail industry has come together to demand business rates relief is afforded to Scotland-based retailers, in a letter addressed to the Scottish government’s finance secretary Shona Robison.

The letter signatories include The Fed, Scottish Retail Consortium (SRC), Scottish Grocers’ Federation, and British Independent Retailers Association.

“This is a challenging time for retailers in Scotland,” the letter said. “Retail sales have flatlined for the past five months, the growth in shopper footfall is meagre at best, yet statutory costs are spiralling. Employer’s national insurance contributions… will disproportionately impact retail.”

Scotland-based wholesalers outperforming England and Wales

The call follows the decision made in the UK Budget to afford England-based retail, hospitality and leisure sectors a temporary and capped rates relief for the coming year.

It also comes in the wake of the UK government’s colossal increase in employer’s national insurance contributions which is set to cost retailers in Scotland £190m each year, starting in April.

Robison is set to announce her plans in the Scottish Budget on 4 December, covering income tax, welfare benefits and more, for the next financial year, which runs from 1 April 2025 until 31 March 2026.

The joint letter was submitted on 25 November to the Finance Secretary.

Calls for prioritising competitive business

Speaking ahead of the Scottish Budget, the director of the SRC, David Lonsdale, said: “Whilst MSPs will rightly and robustly scrutinise the Scottish government’s tax and spending plans, it’s vital politics doesn’t get in the way of ensuring a Budget that delivers for Scotland’s businesses.

“In these unsettling times when growth is weak, retail sales are flatlining, and taxes and other statutory costs are spiralling, businesses crave certainty and predictability.

“We therefore hope Scottish ministers will bring forward a pragmatic pro-business Budget which doesn’t unfairly increase the cost of doing business and prioritises competitive business taxes. In return that should maximise the chance of a collegiate approach amongst government and opposition MSPs which would ensure that a pro-growth and business friendly Budget can be passed quickly without delay.

“Any failure to pass a Budget in good time would add a thick layer of uncertainty at an already challenging time for retail. We hope our political parties will collectively rise to the challenge.”

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