Retail trade body calls for new rates moratorium

Pressure: Shops facing the squeeze

The Scottish Retail Consortium (SRC) has called for a moratorium on new or additional rates levies to help reduce the pressure piling up on shopkeepers.

In a wide-ranging pre-Budget submission to the Scottish Government, SRC said keeping rates as low as possible was necessary to help high streets and “economically fragile” communities.

“With consumers and retailers under pressure from higher inflation, rising costs and anaemic growth, the Scottish Government has to put growing the economy at the very heart of its next Budget,” SRC director David Lonsdale said.

“The Scottish Government should keep income tax rates down, boosting customer confidence and keeping consumer spending buoyant to support the economy as well as government revenue.

“Retailers too will look for support to help them keep down prices and stimulate investment plans.

“The Barclay Review rightly pointed out that our current business rates regime is inadequate to the task ahead of helping to lift private sector investment.

“We want to see progress made on Barclay’s call for an end to the self-defeating Scotland-only rates surcharge on medium-sized and larger commercial premises, and a moratorium on new or additional rates levies.

“This would keep down the cost of doing business on our high streets and aid more economically fragile communities.”

In their submission, the SRC also called on the Government to make good on a commitment to produce a Scottish retail strategy and increase the size of the mooted £10 million Flexible Workforce Development Fund and tie its future funding to the projected overall increase in devolved receipts from the Apprenticeship Levy.

Mr Lonsdale added: “Working with firms to ensure they directly benefit from the Apprenticeship Levy monies and more investment in GDP-enhancing infrastructure are also essential to allow retailers to better compete in the digital economy.

“Last year’s Budget contained some positive steps forward, with modest changes to the Apprenticeship Levy and large business supplement thresholds.

“The SRC hopes the finance secretary will be bolder this year, resisting siren calls to raise income taxes and with a further decisive step towards bringing the rates supplement into line with England.

“With half of VAT receipts being assigned to Holyrood, our politicians have a direct stake in facilitating a flourishing retail industry.”

David Lonsdale, director of the Scottish Retail Consortium, says the Scottish Government must prioritise growing the economy.