Business tells SNP to pass on Chancellor’s £42m windfall
SCOTLAND’S high streets are set for a major spending boost as business bosses demand that SNP ministers pass on a £42million Budget windfall.
Chancellor Philip Hammond yesterday announced a multi-million-pound package of measures to ‘transform’ the country’s town centres and retail areas following ‘irreversible’ damage caused by changing markets and growing pressures.
The move will see nearly 500,000 firms south of the Border benefit from business rates relief, as well as cash for councils to turn empty shops into office and homes and improve transport links.
Mr Hammond admitted a shift in consumer behaviour had led to ‘irreversible’ changes – but pledged to prevent further damage, with a £675million co-funding deal to secure the future of town centres.
The package of measures announced will see Scotland receive £42.2million in Barnett Consequentials next year.
Business bosses in Scotland have urged Finance Secretary Derek Mackay to follow Mr Hammond’s lead to help ‘reinvigorate’ the country’s high streets.
Scottish Chamber of Commerce director Liz Cameron said: ‘With reliefs announced by the Chancellor that will support the high street and provide relief to nearly 500,000 small retailers, we look forward to engaging with the Scottish Government to ensure that Scotland adopts the most competitive business taxation system.
‘Businesses will look to the Scottish Government to utilise any consequential uplift from the Barnett Formula and direct any additional funds towards investment.’
There have been growing concerns over the country’s struggling high streets, which have been hit with huge rates rises. Last year’s revaluation saw retailers, pubs, restaurants, cafes and hotels face tax hikes of up to 400 per cent – with the SNP forced to cap increases.
It has since faced calls to overhaul the system to stimulate the economy, with the Scottish Daily Mail’s Save the High Streets campaign urging ministers to ease pressure on struggling firms.
Yesterday, Mr Hammond announced that 496,000 companies south of the Border will have their business rates cut by a third. This will apply to all firms in premises with a rateable value of £51,000 or less, which the Chancellor said would take in 90 per cent of independent shops.
He added: ‘The change our high streets face is irreversible and it will take them time to adapt, but I know many small retail businesses are struggling to cope with the high fixed costs of business rates.
We recognise technological change will bring challenges as well as opportunities and there is one part of our economy which is currently confronting that in spades: our high streets. Embedded in the fabric of our cities, towns and villages, the high street lies at the heart of many communities and is under pressure as never before.’
Scottish Secretary David Mundell said Mr Hammond’s announcement would help ‘boost Scotland’s economy and reinvigorate Scotland’s high streets’.
Colin Borland, director of devolved nations at the Federation of Small Business, said: ‘Today the Chancellor sought to arrest the dramatic decline in small business confidence. We need to make Scotland’s high streets fit for the future. That means making them attractive to businesses, residents and public sector bodies.
‘The Scottish Government has already set the ball rolling on this front with its Town Centre Regeneration Fund and Small Business Bonus scheme. New monies as a consequence of today’s Budget should be used to expand and refresh these important initiatives.’
Scottish Retail Consortium director David Lonsdale, said: ‘For Scottish retailers the focus will now shift to December’s devolved Budget. With significant Barnett Consequential funding accruing to Scotland from the Budget, the Finance Secretary should prioritise measures which reduce the cost of doing business.
At the weekend, Mr Mackay hinted he could hand a lifeline to struggling firms north of the Border.
He said: ‘I am sympathetic around business rates because I want Scotland to be competitive and I want us to have a competitive advantage.
‘We have already put in place a number of measures to support businesses on domestic rates. I will look at further measures following the UK Government’s Budget.’