Retail trade union Usdaw and the Scottish Retail Consortium (SRC) have stepped up pressure on the Scottish government to introduce a permanent business rates discount for retailers, warning that Scotland risks falling behind the rest of the UK as England and Wales roll out significant support packages.
The intervention comes after chancellor Rachel Reeves confirmed in last week’s Budget that retail, hospitality and leisure properties in England will receive a permanently lower business rate from April, equating to a 10 per cent discount compared with the rate retailers currently pay in Scotland.
The reforms are backed by a £3.2 billion Transitional Relief scheme and an expanded Supporting Small Business package aimed at protecting independent shops and pubs during the switch to the new rating system.
Wales followed on Tuesday with its own reforms. The Welsh government will introduce a new retail multiplier of 0.350 from April 2026, cutting bills for eligible shops by around £20m, alongside a wider package of transitional relief worth £116 million over two years. The standard multiplier will also fall to 0.502, its first reduction since 2010.
Usdaw said the direction of travel in England and Wales underscores the need for urgent action in Scotland, where retailers currently face the highest poundage rate in the UK and contribute around 20 per cent of all business rates raised. Retail employs 235,000 people north of the border – Scotland’s largest private-sector workforce.
Tony Doonan, Usdaw’s regional secretary for Scotland, warned that failure to act would undermine investment and threaten store viability.
He said: “We’re calling on MSPs to implement a permanent business rate discount for all shops from next April otherwise there is a real risk that Scotland will miss out on the development of new stores and existing stores will become less attractive and viable options to invest in. That’s not good for the condition of our high streets, shopping centres and retail parks, nor for staffing levels and job opportunities here in Scotland.”
SRC director David Lonsdale echoed those concerns, stressing that a competitive rates regime is essential to keeping shops open, supporting jobs and attracting footfall.
He said: “Usdaw’s intervention underlines how continued investment in stores is essential to maintaining retail jobs and keeping shops viable and attractive to customers, in turn driving footfall and minimising the number of shuttered shopfronts. … It’s critical that the government ensure all shops here don’t miss out on a business rate discount which is being brought into effect in England. If it becomes materially more expensive to operate shops north of the border than elsewhere, that’s likely to shift investment to other parts of the UK, have consequences for retail jobs, and make economic recovery here more arduous.”
Both organisations are urging Scottish ministers to use next month’s Scottish Budget to ensure retailers benefit from a permanent discount at least equivalent to the support being introduced in England.