Call for business rates to be reduced

Decisive action to reduce business taxes and boost consumer spending should be at the heart of the upcoming Scottish budget, according to the retail industry.

The Scottish Retail Consortium (SRC) has called for more government support as retailers are facing profound changes in shopping habits, weak demand and spiralling costs.

The trade body’s budget submission – titled Certainty, Competitiveness, Confidence – was sent earlier this week to Finance Secretary Derek Mackay MSP.

David Lonsdale, director of the Scottish Retail Consortium, said the retail sector was in the midst of an unprecedented period of change and the group was keen to develop a retail strategy with ministers.

He said: “These are unsettling times with conditions now the toughest in a decade.

“The only fixed point in a world of flux for retail seems to be rising costs, which are increasingly difficult to absorb without passing on to shoppers.

“However, with the right support in place the industry could do better at re-inventing itself for the future.

“We are therefore keen to progress a retail strategy with Ministers, which will become even more important with further devolution on the cards following Brexit.”

Retail is Scotland’s largest private sector employer, providing 250,000 jobs.

However, recent data has shown flatlining retail sales, declining footfall, fewer shops and a 9% drop in retail jobs on Scotland’s high streets.

The submission comes ahead of the expected publication later this year of the devolved administration’s tax and spending plans for 2020-21.

Mr Lonsdale added: “Positive headway is being made towards Scotland having the most competitive business rates regime in the UK, however that goal has yet to be achieved and rates are now at a 20-year high.

“That means scrapping the Scotland-only rates surcharge on medium-sized and larger premises which increasingly sticks out like a sore thumb.”

David Lonsdale, director of the Scottish Retail Consortium.