Leading industry bodies representing Scottish retail, hospitality and leisure sectors have on Tuesday delivered a joint submission to Finance Secretary Shona Robinson, calling on the Scottish government to act urgently and deliver on the promise of a New Deal for Business, by committing to match the 75 per cent rates relief available in Wales and England.
Representing tens of thousands of businesses, the Scottish Grocers’ Federation (SGF), Scottish Retail Consortium, British Independent Retailers Association (Bira), Booksellers Association, UK Hospitality Scotland, Scottish Licensed Trade Association and Scottish Tourism Alliance have teamed up to highlight the significant challenges facing many small and medium size high street businesses.
Alongside the reduction in footfall due to the cost of living crisis, many businesses continue to be hit by debilitating energy costs, stubbornly high inflation, and an ongoing disruption to supply chains, they noted.
“Combined, the retail, hospitality, and leisure sectors directly employ up to half a million people in Scotland. They are a vital part of many local communities across Scotland. As both local employers and economic multipliers,” Pete Cheema, SGF chief executive, said.
“Producers, suppliers, and households all benefit when local high streets are thriving. However, many of the businesses we represent are struggling to make ends meet, and they urgently require similar support to the relief provided in England.
“Scottish businesses have been trading at a disadvantage to our counterparts south of the border for years, that is why representatives from across our sectors have joined together to send a very clear message to the Scottish government.
“We need to see urgent and meaningful action on the New Deal for Business, and it is essential that the next Scottish Budget offers comparable rates relief to the support available elsewhere in the UK.”
In the Autumn Statement 2022, the chancellor of the exchequer committed to provide 75 per cent business rates relief for properties in the retail, hospitality, and leisure sectors for the 2023 to 2024 tax year, up to a maximum of £110,000 of relief per business. The Welsh government adopted a similar policy.
The Scottish Budget 2023-24 reduced the amount of business rates relief some small businesses will receive through the Small Business Bonus Scheme.
Bira said it fully supports the letter sent to Shona Robinson, urging the Scottish government to take immediate action to safeguard the future of independent retailers across the nation.
Commenting on the letter, Andrew Goodacre, Bira chief executive, said: “We fully support the Scottish Grocers' Federation's efforts to raise awareness of the pressing issues faced by independent retailers in Scotland. The survival and prosperity of these businesses are vital not only to the economy but also to the local communities they serve.
“Bira recognises the immense contribution of independent retailers to Scotland's retail landscape, offering unique products, personalised service, and a distinct shopping experience. However, these businesses are operating under immense pressure, struggling to navigate the economic challenges while maintaining their competitive edge.
“It is crucial for the Scottish government to listen and respond to the concerns raised in this letter. We urge Deputy First Minister Shona Robinson to prioritise the needs of independent retailers and take decisive action to address the burdensome business rates and other financial challenges that threaten their sustainability.”
