SNP urged to support Scotland's high streets by replicating English tax breaks

Scottish Labour leader Anas Sarwar said firms have been forced to pay the price for the SNP’s “financial and economic failure”.

But he insisted there were now “no excuses” after the UK government announced a record block grant for Scotland.

Mr Sarwar said the recent UK Budget extended 40 per cent rates relief for all retail, hospitality and leisure businesses down south as part of plans to protect small businesses and support key sectors.

The independent Fraser of Allander Institute estimated it would cost £220 million to replicate this policy in Scotland. This is more than the £147 million set to be generated as a result of the decision.

However, the UK government has said the wider Budget will mean an additional £3.4 billion for Scotland next year.

Scottish Labour supports “wholesale reform” of non-domestic rates, including increasing the tax applied to large distribution warehouses to level the playing field between high street retailers and online giants.

Mr Sarwar said: “For too long businesses in Scotland have been forced to pay the price for the SNP’s financial and economic failure. Now that the UK Labour government has ended the era of Tory austerity and delivered a record block grant for Scotland, the SNP has no excuses.

“Labour is protecting retail, hospitality and leisure businesses, which are so important to our economy and our communities. The SNP must match this level of ambition and pledge not to short-change Scottish businesses in a desperate bid to fill its budget blackhole for another year.

“The business rates system in Scotland is not fit for purpose as it stands – we need a new direction.

“The SNP must support Scotland’s high streets by passing on rates relief this year, and set out a long term plan to reform rates so they better support local economies.

“Scotland’s economy has been held back for too long by this out of touch and incompetent SNP government – but Labour will back businesses and boost growth.”

SNP finance secretary Shona Robison said decisions will be made as part of the Scottish Budget on December 4.

She said: “The 2024/25 Scottish Budget delivers a competitive non-domestic rates regime including the lowest poundage in the UK for the sixth year in a row, and a package of reliefs worth an estimated £685 million. Our small business bonus scheme remains the most generous of its kind in the UK.

“Decisions on non-domestic rates for next year will be considered in the context of the Scottish Budget 2025/26.”

The small business bonus scheme is available to firms where the combined rateable value of their premises is £35,000 or less and the value of individual premises is £20,000 or less.

The Scottish Government estimates around half of the properties in the retail, hospitality and leisure sectors in Scotland were eligible for 100 per cent relief in 2024/25.