Retailers call for ‘help out’ voucher scheme to get people shopping
Demands made for an ‘eat out to help out’ style scheme to aid the High Street, writes Martin Williams
SCOTLAND’S leading retail association has demanded a firm Scottish Government commitment to an “eat out to help out”-style voucher scheme to help struggling shops survive the coronavirus crisis.
It comes as latest figures show Scotland suffered a 66.3 per cent drop in the numbers going to shopping areas last month – when compared to the same month in 2019. March last year saw most shops closed due to lockdown.
Overall, footfall dropped by 72.1% on the 2019 figure while in Glasgow there was a 68.2% decline, according to a Scottish monitor conducted by analysts Sensormatic IQ.
The Scottish Retail Consortium said the latest measurement on the effect of lockdown on the high street ignites an argument for the Scottish Government to bring in incentives to stimulate spending – and the association is pushing for a voucher scheme to encourage people to shop.
It would run on similar principals to the eat-out-to-help-out scheme launched by Chancellor Rishi Sunak offering incentives to encourage people back to pubs and restaurants over the summer. That involved handing Britons halfprice dining during August, as ministers attempted to restart the economy after the UK’S lockdown.
Earlier this month, the SNP unveiled a high streets’ plan including a £10 million fund to encourage shopping – but the SRC says that pales in comparison to the £145m stimulus planned for Northern Ireland, which has a population total that is one-third of Scotland’s.
Similar schemes to pep up the economy have been introduced in Jersey and Malta.
Last July, Jersey residents were told they would receive £100 each to stimulate the island’s economy.
The £11m scheme from the island’s government was part of a broader £150m economic package to assist with recovery from the Covid-19 pandemic.
The money was provided in the form of a voucher or pre-paid card given to islanders by September and was time-limited to two months. The vouchers could not be spent online, used for savings or spent on gambling.
In November, Northern Ireland’s finance minister unveiled a package of economic measures, including £95m for a high street voucher scheme due to come this financial year.
David Lonsdale, director of the Scottish Retail Consortium, said: “A high street voucher scheme could reignite the economy after lockdown and give a shot in the arm to shops, eateries and other high street businesses in the second half of this year as part of a retail sector recovery plan. It could trigger additional spending by shoppers and consumers beyond the value of the voucher transaction, creating an even larger economic multiplier.
“On April 2, the SNP unveiled a high streets plan, including a £10m fund to encourage shopping. It sounds promising, albeit dwarfed by the ambition/scale of the planned £145m NI stimulus.”
Scottish Labour has already announced it proposes giving every adult £75 to spend in local shops if it wins the Holyrood election.
The Scottish Government said it was investigating the potential for a “national platform for local gift cards/ voucher schemes”, in line with all of the business support schemes that have been introduced to mitigate the economic effects of COVID-19.
“Such a scheme would be aimed at stimulating local economies and spending on Scottish businesses instead of international online platforms,” said a source.
An SNP spokesman said: “The SNP is committed to reviving high streets and local business which is why, if re-elected, we will invest £275m over the life of the Parliament to support community-led regeneration and town centre revitalisation, bring forward a £10 million Scotland Loves Local fund to encourage people to shop locally and help keep wealth within their community.
“We have already committed to a 100% non-domestic rates relief for retail, hospitality, leisure and aviation sectors this year, with an investment of £719m – which is unavailable anywhere else in the UK.”
Liz Cameron, director and chief executive of the Scottish Chambers of Commerce, said support had to go to those in need.
“It is important any support is specifically targeted to help businesses that are most in need if they are to have a fighting chance of coming through the other side of this pandemic,” she said.
A voucher scheme could reignite the economy after lockdown and give a shot in the arm to high street businesses