Call to boost retailers with rate freeze

SCOTTISH retailers are calling on Philip Hammond to freeze the poundage on business rates in a bid to inject ‘some much-needed confidence into the economy’.

Retail bosses believe that if the Chancellor unveils plans to freeze this for the UK in his Budget next month, the Scottish Government will introduce a similar strategy.

Scottish Retail Consortium director David Lonsdale claimed that shops are continuing to struggle with spiralling costs and government-imposed taxes and has urged ministers to step in and help. Earlier this year retailers were among the thousands of Scottish business owners hit with spiralling business rates after the first revaluation of non-domestic rates since 2010.

The move left bosses threatened with massive increases in their bills, before the Government was forced to step in with a cap for some, including the hospitality sector and those based in the North-East.

Thousands of companies are appealing over their rates, with an overhaul of the system set to take place following the Barclay Review.

Business rates are calculated by multiplying the poundage, which is 46.6p in Scotland, by the rateable value of a property.

Mr Lonsdale said: ‘With figures showing 16,400 fewer Scottish retail jobs and 1,831 fewer shops since 2008, injecting some much-needed confidence into the economy is paramount and should begin with keeping down the cost of doing business.

‘Scottish retailers will also be hoping the Chancellor listens to those calling for the business rates poundage to be frozen. Since Holyrood has tended to ape the English poundage rate, a freeze in England could free up over £20million in savings for Scottish shopkeepers.’

Last night, a Scottish Government spokesman said details of the poundage rate would be confirmed in the Budget.

He added: ‘This year we have reduced the rates bills poundage by 3.7 per cent and also funded total rates relief of around £660million, including the Small Business Bonus Scheme which has lifted 100,000 properties out of rates altogether.’

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