Skip to content
Search
AI Powered
Latest Stories

Scottish grocery stores to face UK's highest business rates: SRC

Scottish grocery stores to face UK's highest business rates: SRC
(Photo by Euan Cherry/Getty Images)
Getty Images

A Scotland-only business rate surtax being considered by Scottish Ministers would leave larger grocery stores here facing by far the highest business rate bills in the UK, a fresh analysis by the Scottish Retail Consortium has found.

It follows the announcement on Thursday (28) when Northern Ireland became the last of the four home nations to set its business rate for the 2024-25 financial year.


In its Scottish Budget on Dec 19, the Scottish government revealed it was considering the introduction of a business rate surtax on larger grocery retailers, to “sustain the public finances”. A previous version of the surtax was in place from 2012 to 2015, and cost those firms affected £96 million.

Scotland’s business rate is set to soar to 55.9p in the pound in April for larger commercial premises, its highest rate in the twenty-five years since devolution. If a surtax comparable to the 2012-15 model were added on top this would mean larger grocery stores in Scotland would face by far the highest business rate in the UK, at circa 69p in the pound. It would see these stores taxed twice and push up their business rate bills by a further 23 per cent.

The association states, "food retailing is historically a low profit margin sector and has amongst the lowest profit margins of any industry sector. A study by the Competition & Markets Authority last July found food retailers’ profits had shrunk from 3 per cent to just 1.8 per cent of revenues, reflecting increases in commodity prices but also their efforts to keep down prices for customers".

Last month an analysis by the SRC found grocery stores would require approximately £1 billion of additional retail sales each year if they had to cover the cost of a new Scotland-only business rates surtax.

David Lonsdale, Director of the Scottish Retail Consortium, said, “Scottish Ministers are at risk of giving Scotland a reputation for higher taxes and regulation and lower growth than the rest of the UK. The consideration being given by Scottish Ministers to an arbitrary business rates surtax on grocery stores is troubling. Thwacking grocery stores with the highest business rate in the UK and treating them like a milch cow would breach government promises on business rates. It would also mark a decisive departure away from the pledge to finally restore rates parity with England.

“A surtax would have real world implications and unintended consequences for retailers, store colleagues, and customers. If the state of the devolved public finances turns out to be worse than feared then presumably it opens the door to other economic sectors being similarly targeted. The sooner this surtax is shelved the better.”

More for you

Brits divided on acceptability of shoplifting,YouGov Poll

Brits divided on acceptability of shoplifting.

iStock image

Brits divided on acceptability of shoplifting amid rising retail crime

Some Brits believe that shoplifting can be acceptable, states a recent report, despite the country experiencing an epidemic of store thefts.

According to a recent YouGov poll of 2,150 adults, 40 per cent of the public agreed that shoplifting food was sometimes acceptable if a person could not afford the goods. More than half of those asked (51 per cent) said it was never acceptable.

Keep ReadingShow less
Footfall increased in January 2025.

Footfall increased in January 2025.

(Photo by Christopher Furlong/Getty Images)

Footfall increased in January as shoppers head to stores: BRC

Shopper footfall received a welcome boost as many consumers hit the January sales in their local community, shows recent data, bringing a welcome news for high streets following a particularly difficult Golden Quarter to end 2024.

According to BRC-Sensormatic data released today (7), total UK footfall increased by 6.6 per cent in January (YoY), up from -2.2 per cent in December.

Keep ReadingShow less
New Ann Forshaw’s Milk Shed launches at SPAR Derwent in Keswick

New Ann Forshaw’s Milk Shed launches at SPAR Derwent in Keswick

SPAR Derwent shakes things up with new Milk Shed

SPAR Derwent in Keswick has become the latest store to introduce an Ann Forshaw’s Milk Shed, bringing fresh whole milk and delicious flavoured milkshakes to the local community.

The new Milk Shed follows successful launches at Ann Forshaw’s Alston Dairy and SPAR stores in Burnley and Milnthorpe.

Keep ReadingShow less
SPAR Cavehill celebrates former owner’s 70th birthday

SPAR Cavehill raised funds for Community Fire & Rescue Service as part of former owner’s 70th birthday celebrations

SPAR Cavehill celebrates former owner’s 70th birthday with charity fundraiser

Belfast’s SPAR Cavehill closed out 2024 with a heartwarming community celebration, marking the 70th birthday of former store owner Norman Porter while raising £800 for two local charities.

The event, organised by the store’s current owners, Frank Quigley and Norman’s daughter, Jenny Reilly, brought together staff, customers, and local residents to celebrate the milestone birthday and support SPAR’s charity partner, Marie Curie, as well as the Community Fire & Rescue Service.

Keep ReadingShow less
IQOS heat-not-burn device and a Marlboro cigarette pack

IQOS heat-not-burn device and a Marlboro cigarette pack

REUTERS/Carlo Allegri/Illustration/File Photo

PMI projects up to 12.5 per cent profit growth for 2025 amid strong smoke-free expansion

Philip Morris International (PMI) has forecast an increase of up to 12.5 per cent in adjusted diluted EPS for 2025, following a strong financial performance in 2024, driven by the continued expansion of its smoke-free product portfolio.

The company delivered a reported diluted EPS of $4.52 (£3.63), or $6.01 before a Canada non-cash impairment of $1.49, compared to $5.02 in 2023. Adjusted diluted EPS reached $6.57, representing growth of 9.3 per cent, and 15.6 per cent on a currency-neutral basis.

Keep ReadingShow less