Scottish retailers 'to pay £54m more in rates' than English counterparts
Some shops will pay far higher rates than their counterparts south of the border come April
Medium and larger shops in Scotland are set to pay £54 million more in business rates than their counterparts in England in the next year, new analysis has found.
Some 2,296 shops in Scotland with a rateable value of £100,000 or above will be liable for the higher 54.8p in the pound rate from the start of April, according to Scottish Retail Consortium (SRC).
The group said similar-sized stores south of the border will pay 43p in the pound.
The SRC criticised the Scottish Government over the discrepancy with England.
The consortium said the more than 2,000 stores impacted north of the border will not be eligible for the Scottish Government’s new retail hospitality and leisure (RHL) sectors’ rates relief.
Instead, they will be liable for a poundage rate which is 27% above that in England.
Smaller stores – those liable for the basic and intermediate property rates – will benefit from the new RHL rates relief.
The SRC welcomed the new RHL relief announced in the Scottish budget but said that even the RHL rates will be above those in England, while the amount that can be claimed will be capped, unlike those south of the border.
David Lonsdale, director of the SRC, said: “Scotland’s medium-sized and larger stores will effectively be stumping up a £54 million surcharge from next month when new business rates come into force, compared to their English counterparts.
“The decision taken in the Scottish budget not to match the new rates regime in England will put into sharp focus the difference between trading north and south of the border.
“To their credit, the Scottish Government has recognised retailers pay a disproportionate amount in business rates and the new retail hospitality and leisure sector’s rates relief is a positive step forward.”
However, Mr Lonsdale said “convoluted restrictions” and a cap on eligibility mean that the measures won’t benefit all stores, and it will be less generous at every level compared to the relief on offer to retailers in England.
He went on: “That relief won’t even apply to medium-sized and larger stores liable for the Higher Property Rate.
“These shops will pay a business rate substantially above that of similarly-sized counterparts down south.
“As it stands, Scotland risks becoming a materially more expensive place to operate shops and this could see a shift in investment down south.
“Continued investment in stores is essential to keep them viable and attractive to customers and to minimise the number of shuttered shops.
“It is not in the interests of Scotland’s economy for shop owners to be incentivised to invest in Berwick-upon-Tweed over Balloch, Bathgate, or Brechin.”
The figures were confirmed in response to a written parliamentary question from Mid Scotland & Fife MSP Murdo Fraser.
Mr Fraser, the Tories’ business spokesman, said: “The anti-business policies of nationalist ministers are putting Scottish firms at a competitive disadvantage and damaging our economic competitiveness.”
A Scottish Government spokesperson said: “The Scottish budget 2026-27 will support business and communities with a package of reliefs worth in excess of an estimated £870 million including support through transitional relief schemes and retail hospitality and leisure reliefs.
“We estimate that 96% of retail, hospitality and leisure businesses could benefit from some form of relief in 2026-27.
“Official statistics indicate that on June 1 2025, retailers in Scotland were in receipt of £86.5 million of support through the Small Business Bonus Scheme, the most generous scheme of its type in the UK.”
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