Scottish Wholesale Association (SWA) acknowledged the Scottish Government’s efforts to deliver the 2024-25 Budget during a time of significant economic challenge.
While the commitments to stability and growth are positive steps, the wholesale and food and drink sectors require more targeted action to navigate ongoing pressures and invest in their future with confidence.
Commenting on the draft Scottish Budget, Colin Smith, chief executive of the Scottish Wholesale Association, said, “This Budget demonstrates an ambition to provide direction and stability, which is welcome, but for wholesalers, the reality on the ground remains tough.
"Rising costs linked to inflation, energy, and transportation – compounded by UK-wide changes to National Insurance contributions, the National Living Wage, and business property relief – continue to squeeze margins and challenge operations, particularly for family-run SMEs.
“We hope that measures within the Budget will help ease pressures on wholesale employees, who are the backbone of our sector. Ensuring our workforce feels supported is essential as businesses navigate these economic challenges.”
Smith acknowledged helpful measures, which will indirectly support wholesalers serving the hospitality industry, through the reinstatement of 40 per cent non-domestic rates relief for hospitality businesses, from 2025-26.
He said, “The hospitality and leisure sectors are critical to Scotland’s economy but who have struggled to fully recover after Covid, and which our members work tirelessly to sustain.
"Wholesalers are at the core of the food and drink supply chain, ensuring those businesses remain supplied. This much-needed support for hospitality was vital in trying to secure their long-term viability and investment within the Scottish economy.”
Confirmation from Scottish Government that they are not planning to proceed with the reintroduction of the Public Health Supplement for large retailers was also welcome
Smith also highlighted the importance of providing a stable environment for business planning.
“A sense of direction is encouraging, but businesses need certainty and tangible measures to invest confidently in the long term,” he said. “For wholesalers, and indeed many of our customers, this means targeted support that allows us to manage rising costs while contributing to Scotland’s economic recovery and sustainability targets. There was little sense of any optimism for business confidence from this budget.”
The SWA also stressed the importance of addressing the sector’s recruitment challenges, particularly in attracting young talent. “We welcome any Budget commitments to invest in education and skills development through colleges and training programmes,” Smith said.
“These measures could support the wholesale industry’s efforts to encourage more young people to consider careers in our diverse sector, ensuring a strong pipeline of talent for the future.”
The SWA, meanwhile, reiterated its commitment to working closely with the Scottish Government to ensure the wholesale sector’s critical role is fully recognised.
Smith emphasised: “We are eager to collaborate with the government to build a resilient, sustainable future for the wholesale sector and the communities it serves. We have consistently called for a Scottish Government Scottish wholesale strategy which we believe is essential to navigate the economic challenges ahead, and to give the confidence our members need.”
As the detailed implications of the Budget become clearer, the SWA will continue to advocate for policies that support the sector’s long-term sustainability and competitiveness. “The wholesale industry is integral to Scotland’s economy, and with the right support, it can thrive and contribute to Scotland’s prosperity,” Mr Smith concluded.
