SNP’s high taxes ‘are killing off our shops’
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BRITAIN’s biggest supermarkets and high street chains have accused ministers of causing job losses by making scotland the most expensive part of the UK to do business.
The scottish Retail Consortium (sRC) said a ‘potentially lethal cocktail’ of higher taxes is deterring investment.
Nearly one in four shops north of the Border could close by 2025, the sRC warns in its latest report The Future of scottish Retail.
It says ‘the impact of scottish-specific taxation makes operating in scotland more expensive and affects retail investment’.
The study highlights the Large Business supplement – an extra charge on medium and large premises – as well as increases in business rates and the failure to provide assistance for firms facing the Apprenticeship Levy as public policy costs which affect firms directly.
It also cites council tax rises and the decision to force higher-rate taxpayers to pay more in scotland than the rest of the UK as other factors which will contribute to a consumer spending slowdown.
The report states: ‘With such a significant tax burden, retailers have limited resources to make the capital investment required to prepare their businesses for the new economy.
‘New market entrants, whose operations are far less reliant on occupying large premises or employing significant numbers of workers, are much abler to invest in technology and workers. Regrettably it appears the extra costs in scotland are deterring this investment.’
The sRC, which represents 70 per cent of retailers, called on the Government to lower the tax burden faced by firms.
It estimates that between now and 2025, 23 per cent of stores will close and says the number of retail jobs fell by 9,200 between 2014 and 2015.
There are 252,000 people working in retail, making it scotland’s largest private sector employer.
sRC chairman Andrew Murphy said: ‘Government can promote conditions for constructive investment in business model change and creation of quality jobs, or it can largely ignore the systemic problems and allow increasing costs to fall on retailers.
‘such an approach will curtail investment in stores and result in fewer jobs, hollowed-out town centres and lower tax revenues.’
Dean Lockhart, economy spokesman for the scottish Conservatives, said: ‘Ministers were warned not to hike tax on businesses north of the Border. The sNP ignored the warnings and now businesses and consumers are paying the price.’
Employability Minister Jamie Hepburn said: ‘We have committed £660million of business rates relief to the year ahead and have extended the small business bonus scheme so more than half of premises will pay no rates.
‘In addition, 8,000 business properties will no longer pay the Large Business supplement and the core tax rate that applies to the rateable value of business properties has been cut by 3.7 per cent.’