Scottish shops risk falling further behind unless next month’s Scottish Budget closes the business rates gap with England and Wales, a leading retailer body has warned, calling on the Scottish Government to use its upcoming budget to give retailers in Scotland the same level of support as their counterparts elsewhere in the UK.
The call comes after the Chancellor’s Autumn Budget last week confirmed further support for high street businesses in England. From April 2027, retail, hospitality and leisure properties in England with a rateable value up to £18,000 will pay no business rates, up from £12,000, with tapered relief up to £21,000.
The government expects this to take around 70,000 more businesses out of business rates altogether, while bills for other qualifying retail, hospitality and leisure properties will be frozen in real terms for two years.
This builds on the permanently lower business rates introduced in England from April this year for retail, hospitality and leisure properties with a rateable value under £500,000, while Wales has introduced a lower rate for shops with a rateable value below £51,000.
In Scotland, eligible retail, hospitality and leisure properties instead receive a temporary 15% relief, which is capped, and full relief under the Small Business Bonus Scheme stops at a rateable value of £12,000.
Andrew Goodacre, CEO of Bira, said: “Once again the Scottish Government has failed to create a level playing field for retailers in Scotland compared to the rest of the UK. By not matching the retail discount that we now have in England and Wales, it is much more expensive to have a retail shop in Scotland.
"This makes it harder for these small businesses to compete with the online giants, for whom the cost is the same no matter where they are selling.”
Bira, which works with over 6,000 independent retailers across the UK, says independent shops in Scotland cannot afford to be left behind for another year.
Karen Forret, President of Bira and Managing Director of Wilkies, said: “Year after year, Scottish retailers have watched support for shops in England and Wales go further than anything offered here, and we are still waiting for a level playing field.
"Why does the Scottish Government not want to do more to save our high streets and everything they contribute to Scotland’s economy? Investment in regenerating our towns and high streets is welcome, but there is little point if shop units are left lying empty because independent businesses cannot afford to trade from them.”
Mrs Forret added: “At Wilkies we have had to make the very difficult decision to close stores, but we kept the rest open because we believe our high streets and the jobs they support are worth saving. Scottish businesses that keep investing in their high streets deserve the same support as retailers in the rest of the UK, and this Budget is the chance to deliver it.”