The Courier & Advertiser (Fife Edition)
Move to save £2m from rates bill for retailers welcomed
Under-pressure retailers will save around £2 million from their rates bills as a result of Budget changes to the headline poundage rate.
The move came alongside a vow by the finance secretary to hold back on plans for the much-disparaged out-of-town retail levy and a new £50 million cash pledge to boost Scotland’s struggling town centres.
Scottish Retail Consortium director David Lonsdale said Derek Mackay had listened to concerns from the retail sector.
However, he described projected output growth of a little over 1% as “sobering” and said more than 5,000 Scottish business operating from medium-sized and larger premises were still facing higher charges than counterparts in England.
“With Scottish retailers feeling the pinch after a difficult year we’re glad the finance secretary has been more Christmas Elf than Mr Scrooge in this year’s Budget,” Mr Lonsdale said.
“The move to set the most competitive headline poundage rate in the UK is welcome, as is the move to scrap complex and costly proposals for an out-of-town rates levy.
“Similarly moves to protect ordinary workers from income tax rises and investment in infrastructure, housing, and skills are positive which should support the economy.
“The new Town Centre Fund appears to be a promising initiative and we’ll await the details with interest.”
Scottish Chambers of Commerce chief executive Liz Cameron said the Budget had provided a response to many of the concerns raised by the business community.
She welcomed the scrapping of the out-of-town levy proposal and said efforts to increase the country’s talent pool were positive.
She said: “With a tightening labour market in Scotland and the UK, we welcome the government’s approach to widen the pool of talent available for Scottish companies, particularly its commitment to supporting women to return to work after a career break.
“In addition, the government’s commitment to supporting parents to address barriers to work and providing in-work support will provide a much-needed lifeline to those who want to work, whilst also supporting businesses who hire a diverse workforce.”
The Federation of Small Businesses Scotland described the Budget as “mostly savvy” and said it offered small business – which make up the majority of the economy – greater stability in Brexit-dominated times.
“The finance secretary talked about directing our economic and skills agencies to help Scottish business ride out any economic turbulence caused by the UK leaving the EU,” said Andrew McRae, FSB Scotland policy chairman.
“That’s an important and sensible move. While there are areas where we’ll press ministers to take additional action or give us more details, this looks like a no-gimmick budget at a difficult time.”
Sharon Bain of accountants PwC said: “Ensuring that increases in business rates will be capped below inflation will be welcomed by businesses, as will the finance secretary’s decision not to introduce an out-of-town supplement.”