SNP ‘must act’ to help struggling high street shops
RETAILERS have called on SNP ministers to back business and stimulate the economy – or see more high street shop closures and job cuts.
The stark warning came as industry leaders set out a number of demands to the Scottish Government.
David Lonsdale, director of the Scottish Retail Consortium, said 2017 had been particularly difficult for some businesses as consumers continue to move online, while ‘rising costs and thinner profits’ hit high street shops.
He said a number of ‘governmentimposed costs’ were holding some retailers back.
Two key factors in improving growth and business next year will be Brexit trade deals and the Scottish economy, Mr Lonsdale added.
Earlier this month, the Scottish Fiscal Commission revealed that Scotland’s economic growth is set to lag behind the rest of the UK for the next five years, failing to top 1 per cent until 2022.
Mr Lonsdale said this was ‘deeply concerning’ for retailers, adding: ‘This reinforces the need for a far greater emphasis on policies from the Scottish and UK administrations, which will help firms to invest and which support consumers.’ He has called for a debate on how best ministers can act to stimulate growth, while putting forward a number of ideas.
These include cutting ‘Government-imposed costs’, which he said continue to ‘escalate and are increasingly difficult to absorb’.
He also hit out at the SNP’s decision to hike income tax for thousands of Scots, saying it will see consumers spending less.
‘The implications for consumer spending from the decision to dip into consumers’ pockets to the tune of £164million in extra income taxes remains to be seen,’ Mr Lonsdale said. ‘But less money in consumers’ pockets will cause shoppers to carefully consider what purchases they can afford.
‘Added to this is the squeeze on family finances, set to be challenged further in the year ahead by increases in council tax and higher statutory pension contributions.’
He warned: ‘If government fluffs the opportunity to bear down on the costs of doing business and the cost of living over the coming year, then it risks failing to stem the decline in retail jobs and shops, especially in our more economically fragile communities.’
A Scottish Government spokesman said: ‘We are doing everything within our power to support the economy, including our retailers, and deliver a growth package to stimulate our economy and provide stability in the wake of Brexit uncertainty, UK Government austerity and failure to control inflation, reducing the spending power of consumers.
‘Our draft Budget will more than double spending on economic growth – an increase of £270million in 2018/19.’
He added: We have also reduced the business rates poundage by 3.7 per cent and funded total rates relief of around £660million.’