Zero rate tax band could ‘help boost business’

A retail lobby group has called for a zero-rate of income tax for low-earners to be central to the next Scottish budget, as part of efforts to help business.

The Scottish Retail Consortium (SRC) has highlighted changes which have been affecting firms in a letter sent to Finance Secretary Derek Mackay.

Ministers have been urged to rule out increases to income tax, freeze the headline business rate and scrap a proposed levy on out-of-town and online companies.

David Lonsdale, director, said: “Technology, changing customer behaviour, constrained household incomes, and significantly rising cost pressures have led to a perfect storm.

“It’s hard to think of a tougher time to be a retailer and it’s difficult to be clear about what the future of the industry will be. Keeping costs down is one part of the equation – another is growing the economy and encouraging consumer spending. With that in mind, and after significant alteration last year, we believe income tax rates should not increase in the budget.”

A Scottish Government spokeswoman said: “We will continue to do all we can to support Scottish retailers. We are considering the Retail Consortium’s Budget submission as we seek to deliver a balanced budget.”