The Scottish Retail Consortium (SRC) has called on the Scottish government to put shoppers and retail businesses at the heart of its upcoming budget, urging ministers to avoid new costs and make the country more competitive for retailers.
In its 2027-28 Scottish budget submission, the SRC has set out 21 recommendations covering retail costs, investment, consumer spending and safety. The submission comes ahead of the Scottish government’s planned unveiling of its near-£70 billion budget on 3 December.
The trade body said retailers were facing “twin pressures” from subdued consumer spending and rising operating costs. Retail is Scotland’s largest private-sector employer, supporting 228,000 jobs directly and thousands more across its supply chain.
Among its key demands, the SRC is calling for the government to avoid introducing new taxes or regulatory costs on retailers, including a commitment not to impose new taxes on retail warehouses.
It is also urging ministers to scrap the proposed statutory food price cap, which it describes as an “ill-conceived and incoherent” measure that could add complexity and costs for retailers.
On business rates, the SRC wants a timetable to ensure retailers of all sizes benefit from rates at least as competitive as those in England.
The organisation is also calling for action to narrow the gap between Scottish and UK income tax rates for intermediate, higher, advanced and top-rate taxpayers, arguing this would leave shoppers with more money to spend and help retailers with recruitment.
Retail crime is another focus of the submission, with the SRC calling for increased funding for Police Scotland’s Retail Crime Taskforce and greater resources for Trading Standards to tackle illicit traders.
David Lonsdale, director of the Scottish Retail Consortium, said retailers were “weathering an economic storm” as international instability and domestic policy added to supply chain and operating pressures.
“The industry is looking for an unabashed budget for shoppers which supports businesses who are doing everything in their power to keep costs down for Scottish households,” he said.
Lonsdale said the new finance secretary, Jenny Gilruth, needed to address what he described as the legacy of the previous Parliament, including a less generous business rates discount for Scottish retailers than in England and a complex income tax system affecting recruitment.
He also called for greater support for the Retail Crime Taskforce and the removal of the food price cap.
“Despite these difficulties the industry is keen to work with the government to deliver our shared ambition to make Scotland the best place in the UK to grow a retail business,” Lonsdale said.
“With the Holyrood election behind us now is the time to take the tough decisions to balance the books, support shoppers and retail businesses, and kickstart economic growth.”
The SRC said the parliamentary arithmetic means more than one political party will need to support the Scottish budget for it to pass, and urged MSPs to work together on a “pro-growth budget”.
“The first budget of this session has the chance to set a new pro-growth tone,” Lonsdale added. “We hope the new finance secretary will seize the moment.”