Scottish retailers urge MSPs to bring pro-business budget

Retailers are calling on MSPs from across the political spectrum to work together to pass a Scottish Budget which is pro-business.

The Scottish Retail Consortium has called on Holyrood to avoid adding unwarranted costs onto business, and supports economic growth.

SRC sent its detailed Scottish Budget recommendations paper to Ministers and MSPs in September. It contained suggestions for cutting the cost of government, delivering competitive taxes and regulation, and combating crime against retailers.

However, last week it wrote to Finance Secretary Shona Robison to say that the sheer magnitude of the decision in the UK Budget on employer’s national insurance contributions had ‘fundamentally altered the outlook’, as it would add £190 million each year to Scottish retailers’ costs.

The SRC says the tax hike will have a disproportionate impact on the retail industry which is Scotland’s largest private sector employer.

Speaking ahead of the Budget on Dec 4, the director of the SRC, David Lonsdale, said: “The parliamentary arithmetic suggests that more than one political party will have to support the Scottish Budget this year.

“Whilst MSPs will rightly and robustly scrutinise the Scottish Government’s tax and spending plans it is vital politics doesn’t get in the way of ensuring a Budget that delivers for Scotland’s businesses. In these unsettling times when growth is weak, retail sales are flatlining, and taxes and other statutory costs are spiralling, businesses crave certainty and predictability.

“We therefore hope Scottish Ministers will bring forward a pragmatic pro-business Budget which doesn’t unfairly increase the cost of doing business and prioritises competitive business taxes. In return, that should maximise the chance of a collegiate approach amongst Government and Opposition MSPs which would ensure that a pro-growth and business-friendly Budget can be passed quickly without delay.

“Any failure to pass a Budget in good time would add a thick layer of uncertainty at an already challenging time for retail. We hope our political parties will collectively rise to the challenge.”