Amid uncertainty over Europe

‘There is no security, no safety net’

With Christmas looming for retailers, any moves to increase tax rates for most Scots would have made an already nervous industry even more concerned.

The rest of the budget had some worthy initiatives around skills and infrastructure, with the announcement of a new £50m Town Centre Fund of particular interest to retailers. Action is certainly needed to make High Streets attractive and easy to access; and we hope that funding will be used to help make those Places vibrant and exciting destinations – attracting footfall and hopefully customers.

There was little subtlety

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The scrapping of the out-of-town levy has been hailed as giving some relief to businesses

in the Finance Secretary’s message. He wanted to provide a sense of calm and control over the economy. Yet one of the elements somewhat outwith Mr Mackay’s control will have him concerned: the growth projections from the Scottish Fiscal Commission. Whilst these had been revised up a touch from last year, a projection of 1.4 per cent this year is underwhelming. The expectation the growth rate will fall to 1 per cent by 2020 is even more concerning.

This matters as the retail industry and Scottish Government have a shared interest in economic growth. Greater growth should see consumer spending rise,

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which of course leads to more sales and jobs. Those benefit the industry, but of course also generate the income tax receipts, and from next spring the revenues from VAT Assignment, which will fund Mr Mackay’s public spending commitments. The weaker that growth, the lower those revenues, and the more difficult the decisions both Ministers and businesses will have to make.

Ultimately there are many things retailers can welcome in today’s budget; but more may be needed in the future. l Ewan Macdonald-russell is head of policy and external affairs at the Scottish Retail Consortium Bar worker Lori Mcgroarty is hoping to buy her first home with her boyfriend in the new year, but admits opportunities to get on the property ladder are limited.

Ms Mcgroarty, 23, from Airdrie, said she was disappointed the budget offered little security for workers on zero-hour contracts, however she acknowledged an extra £825 million commitment to build an additional 50,000 affordable homes could make a huge difference to those hoping to buy their first property.

She said: “We were looking to buy a home at some point next year, but there is so much uncertainty with my own work, with what is happening in the country as a whole that it is really diffi- 0 Lori Mcgroarty says it is difficult to make plans

cult to make those kind of long term plans.

“I work on a zero-hours contract and there is no security, no safety net if that work dries up at any point. There are no guarantees for me, so I am a little disappointed to see no move on adding that security for workers.”

Ms Mcgroarty continued: “Having said that, the extra funding for affordable housing is very welcome, that could be a huge part of people’s lives. We don’t know where they are going to be built, but it is positive to have something like that in the future.”

Lori said that she had previously been forced to take three weeks off work due to stress, and praised the added £2.7m funding boost for mental health services.

However, she added the uncertainty of Brexit cast a shadow over the budget announcement.

She said: “Any money for mental health services is hugely important. It is an underfunded part of our health service and any amount, no matter how small it is, can really help that.

“I think the issue with this budget, while there are a lot of good ideas, it is so dependent on Brexit that a lot of it has to take what is happening at Westminster into consideration.”