‘Scottish Budget must stimulate a sustainable retail recovery’

The Scottish Retail Consortium (SRC) has submitted its recommendation for the Scottish Government’s 2022-2023 Budget. It has suggested the finance secretary to provide a modest discount to business rates for retailers and look to pep up consumer spending.

SRC’s six-page Budget paper entitled ‘Stimulating A Sustainable Retail Recovery’ was submitted late last week to finance secretary Kate Forbes MSP, who is expected to publish the devolved administration’s tax and spending plans later this year.

The SRC has called for:

• Action to stimulate consumer spending and entice people back to city centres
• No increase in income tax rates for low and modest earners
• A modest further discount to business rates in 2022-2023
• Early progress towards restoring the level playing field with England on the rates supplement applied to larger commercial premises
• A pause on introducing workplace parking levies and rejection of a ban on shops from trading on New Year’s Day
• Clarity over the proposed new company reporting obligations outlined in the recent accord with the Green Party

The retail industry is Scotland’s largest private sector employer, providing 230,000 jobs directly with tens of thousands more in the supply chain.

David Lonsdale, Director of the Scottish Retail Consortium, said: “The last two Scottish Budgets have helped protect hundreds of shops and thousands of retail workers during the covid pandemic. Whilst we desperately hope we are now past the worst of the virus, the retail industry has been battered and bruised by the consequences. Shops have missed out on £4.5 billion in retail sales during the pandemic and spent tens of millions to keep colleagues and customers safe.

“As a result, much of the industry is in a fragile condition – but one which with the right support can help to drive a sustainable economic recovery. To do that, the Finance Secretary should protect less affluent consumers from tax rate increases, provide a modest discount to business rates for retailers, and look to pep up consumer spending.

“Swathes of Scotland’s retail industry are in a parlous state. A sixth of shop units are vacant, footfall is a fifth down on pre-pandemic trading, and sales have yet to climb back to pre-pandemic levels. That indicates the pressure on the industry, but also an opportunity. If we can encourage consumers back to normal spending patterns that will kick-start a recovery for shops, eateries, and suppliers. The last few years have seen the Scottish Budget promote growth and support business – it’s vital that continues this year.”