Retailers urge MSPs to support SNP's 'imperfect' budget

Retailers across Scotland are calling on MSPs to back the SNP’s “imperfect” budget to avoid confusion within the business community.

According to retailers body Scottish Retail Consortium (SRC), the Scottish government’s tax and spending plans are “imperfect” and have many flaws but should still be supported by politicians at Holyrood.

SRC however added that it has many concerns about areas including taxation, regulation and business rates.

But the SRC believes a failure to get the budget through Holyrood would leave a “thick layer of uncertainty” over the country.

David Lonsdale, the director of SRC, said, “Whilst the proposed Scottish budget is far from perfect and has flaws, there is much in it that retailers can get behind.

“Robust debate and scrutiny of the budget over the coming weeks is both right and necessary, however our hope is that ministers and MSPs can work collegiately to pass the budget without diluting the pro-growth measures during parliamentary horse-trading.

“A failure to do so risks adding a thick layer of uncertainty at a challenging time for retail.”

John Swinney, the first minister, is expected to use a speech in Edinburgh today (6) to call for collaboration from other parties to ensure the budget moves through the Scottish parliament in a timely manner.

An initial full parliamentary debate on the budget is due to take place on Feb 4 and the legislation must receive royal assent by the end of March.

The SRC’s submission to Holyrood’s finance committee is supportive of plans to freeze the basic property rate, rule out income tax increases, drop a surtax on grocers and fund action to combat shoplifting.

However, SRC has expressed disappointment over rising business rates for medium and large shops and for the decision not to match relief for smaller premises on offer in England.

It also raises concerns about a lack of measures to reduce the cost of doing business, particularly as retailers are facing increases from April as a result of the UK government’s decision to raise employers’ National Insurance contributions.