Exclusive:Scotland 'one bad Budget away from losing high streets as we know them'

The Scottish Retail Consortium (SRC) has urged Holyrood politicians to “back our high streets or risk further decline”.

Along with four other leading business groups, the SRC has written to MSPs urging them to copy the business rates discount for retail, hospitality, and leisure premises in England.

The SRC, UKHospitality Scotland, Scottish Tourism Alliance, UK Cinema Association and ukactive have warned that a failure to copy the measures “would likely shift investment to other parts of the UK” instead of Scotland.

The Scottish Budget will take place on January 13.

SRC director David Lonsdale said: "Scotland's high streets haven't had their troubles to seek in recent times following the upheaval wrought by the pandemic and cost of living crunch.

“Even now the situation is somewhat precarious, with stores struggling to trade profitably which is why we have so many empty units and gap-toothed retail destinations.

“Unless we see action to permanently maintain a competitive business rate for all retailers with England it will likely mean investment shifts to more attractive and cost-effective locations in down south.

“That’s bad for retailers and for the career opportunities they provide here in Scotland, but also for the condition of our high streets.

“It completely cuts across the efforts underway to rejuvenate our retail destinations. Ministers and MSPs have a choice, back our high streets and retail destinations in the Budget or risk further decline.

“We’re one bad Budget away from losing our high streets as we know them.”

The five organisations represent retailers, hospitality, tourism, and leisure sectors with a stake in the vitality of Scotland’s high streets and town and city centres.

Together the sectors employ 457,000 Scots.

The letter said: “Our ambition is for Scotland to continue to be a great place to do business.

“However, the UK Budget has moved the goal posts. Retail, Hospitality and Leisure businesses in England will receive a permanently discounted business rate from April. This will see a 5p in the pound discount to their business rate, which roughly equates to a 10 per cent discount.

“Our sectors are the backbone of communities across Scotland. The everyday economy drives foot-traffic and provides local and flexible jobs and career opportunities for almost half a million Scots.

“If our sectors in Scotland miss out on a permanent business rate discount we fear this will have significant consequences for our town and city centres. If these locations become less viable to trade profitably that will affect commercial investment and jobs.

“As our high streets adapt to a new economic model in straitened times there remains a critical need for continued investment. Creating the best investment conditions for retail, hospitality and leisure premises is vital to keeping these businesses attractive to customers and to minimise the number of shuttered high street buildings.

“Scotland must not become a materially more expensive place to operate as it would likely shift investment to other parts of the UK. It is certainly not in the interests of Scotland’s economy for retail, hospitality and leisure businesses to be incentivised to invest in Berwick-upon-Tweed over Bothwell, Buckhaven, or Blairgowrie.

“Our organisations have a range of views on reforming business rates. However, we are aligned in asking you and fellow Parliamentarians ahead of the Scottish Budget to maintain competitiveness and introduce a permanent business rate discount for all retail, hospitality and leisure premises; one which is at least as competitive as is planned for England.

“This would deliver on the pledge in the New Deal for Business Group Implementation Plan to deliver the most competitive business rates regime, support commercial investment and economic growth, and signal Parliament stands behind our retail, hospitality, and leisure industries.”

A Scottish Government spokesperson said: “Decisions on non-domestic rates for 2026/27 will be set out in the Scottish Budget in January.

“We will continue to work closely with businesses to drive economic growth and prosperity in our towns, cities and communities.”