RETAIL OF WOE

Government urged to act on problems in shopping industry as job fears grow

THOUSANDS of retail jobs are at risk unless the Scottish Government stop “ignoring” problems in the sector, a report warns.

The Scottish Retail Consortium said almost a quarter of stores could be lost over the next decade.

They said productivity is slower than the UK average and warned high public policy costs are putting off investment.

The report says changes are needed to help the industry while shoppers shift online.

It added: “A failure to recognise the scale of the challenge could be fatal to a large number of businesses.

“The impact of the digital economy, automation, and new technology on retail roles cannot be underestimated.

“Without a more favourable environment, tens of thousands of jobs will be lost.”

The group said a “potentially lethal cocktail” of business rates and high employment costs restrict the ability of retailers to invest in the technology and skills of the future.

The SRC want action to tackle the challenges, including reforming the business rates system to be more flexible and more competitive, and lowering the overall tax burden paid by physical retailers.

SRC chairman Andrew Murphy said: “The Government can create a positive business environment promoting the conditions for c onstructive investment in business model change and creation of quality jobs.

“Or they can continue on the current path of ignoring the systemic problems and allowing increasing costs to fall on retailers.”

About 252,000 people work in retail, making it Scotland’s largest private sector employer, the report said. The SRC also called for work to ensure retailers continue to benefit from free trade arrangements with the rest of the EU as well as the UK single market.

The SNP Government have been under pressure for their approach to business.

In February, Finance Secretary Derek Mackay U-turned on rates and said an extra £44.6million had been found to limit the impact of massive increases.

The cash will go to 8500 companies in the hospitality industry and 1000 in northeast Scotland who are feeling the effects of the oil slump.

Yesterday, Employability Minister Jamie Hepburn said: “We have committed £660million of business rates relief to the year ahead and we have also extended the Small Business Bonus Scheme so more than half of premises will pay no rates at all.

“In the coming year, seven out of 10 will pay no rates or less than they did in the last financial year.”