Retail trade bodies in Scotland have written to Scottish Finance Secretary Shona Robison asking her to ensure shops are given business rates relief in her budget on 4 December.
Scottish Retail Consortium director David Lonsdale and Scottish Grocers’ Federation CEO Pete Cheema are among those to have written to Robison asking that she follows the decision in the UK Budget to grant business rates relief to retail, hospitality and leisure sectors in England.
Chancellor Rachel Reeves used her maiden budget in October to grant retail, hospitality and leisure 40% business rates relief for a year from April 2025, with a cash of £100,000 per business.
The letter – orchestrated by SRC and also signed by British Independent Retailers Association CEO Andrew Goodacre and Federation of Independent Retailers national president Shahid Razzaq – says Reeves’ decision to also increase employers’ national insurance has added £190 million in annual costs to Scotland’s retailers.
“This is a challenging time for retailers in Scotland,” said the letter, sent on Monday.
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“Retail sales have flatlined for the past five months, the growth in shopper footfall is meagre at best, yet statutory costs are spiralling. The latest example of the latter is the Chancellor’s decision to increase employers’ national insurance contributions.
“This will disproportionately impact retail as it is the country’s largest private sector employer and because retail employs large numbers of people in entry-level and part-time roles. The sheer scale of the tax hike and short timeframe for implementation has fundamentally changed the outlook, adding £190 million in extra costs onto Scotland’s retailers each year.
“Providing rates relief would help smaller stores here in Scotland alleviate the UK Government’s tax hike as well as support our hard-pressed retail destinations.
“It would also send a positive signal at a time when the UK administration has said it recognises the rates burden on retail is disproportionate and envisages introducing a permanent business rates reduction for the sector from Spring 2026 onwards.”
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