12 industry groups unite to demand business rates discount for all Scottish retailers

The collective call to Shona Robison comes ahead of the unveiling of the Scottish Government’s Budget next month and in the wake of a UK autumn Budget that introduced a permanent business rate discount for retailers in England.

The retail industry in Scotland employs some 235,000 people and accounts for a fifth of business rates. The 12 organisations behind the letter represent retailers and others with a stake in the “vitality of Scottish high streets and retail destinations”.

Among the signatories on the joint letter are David Lonsdale, director of the Scottish Retail Consortium; Meryl Halls, managing director, Booksellers Association of the UK & Ireland; Andrew Goodacre, chief executive, British Independent Retailers Association; Malcolm Harrison, chief executive, Company Chemists’ Association; and Jim Winship, director of the British Sandwich & Food to Go Association.

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In their joint letter to the Scottish finance secretary, the organisations note: “We fully recognise some of the positive decisions on business rates the Scottish Government has taken over recent years including more regular rates revaluations, ensuring ministers rather than councils set the business rate and reliefs, as well as the move not to apply fair work conditionality to eligibility for business rate reliefs.

“However, as you know in the UK Budget the Chancellor of the Exchequer confirmed retailers in England will receive a permanently discounted business rate from April. This 5p in the pound reduction will see stores down south receive roughly a 10 per cent discount to their business rate. To their credit both the UK and Welsh governments have recognised retailers’ pay a disproportionate amount in business rates, with Wales set to reduce the business rate that retailers’ pay too.

“If the Scottish Government fails to act, retailers here in Scotland will miss out on a permanent business rate discount and existing and new stores and high streets here will - by comparison - become less viable locations to trade and invest in, with consequences for the state of our retail destinations.”

The letter goes on to call for the introduction of a permanent business rate discount for all retailers at the Scottish Budget, due to be held on January 13, which is “at least as competitive” as the one planned for stores south of the Border.

“This would support retailers, the local job and career opportunities they provide, the vitality of our high streets and town and city centres, whilst delivering on our shared vision of making Scotland the best place in the UK to grow a retail business,” the letter concludes.

The other signatories to the letter include Anthony Short, executive director, Music Industries Association; Lesley Cameron, chief executive, Scottish Bakers; and Pete Cheema, chief executive of the Scottish Grocers’ Federation.

Last month, it emerged that Scottish retail sales had edged up for a fourth consecutive month during October but industry leaders warned that consumer confidence remained “shaky” ahead of the crucial festive trading period.

Scotland’s high streets facing twin threats as clock ticks down to Christmas