Lukewarm pre-election budget brings retailers in from the cold on business rates
Success for the retail campaign on business rates, but more could have been done to tackle retail crime.
The Scottish Grocers’ Federation has welcomed announcements by the Scottish Finance Secretary that convenience retailers will now benefit from a 15% relief on business rates. Alongside a reduction in the basic rate ‘poundage’ from 49.8p to 48.1p.
The news follows a tireless joint campaign by Scottish retail associations to match reliefs seen in last year’s budget for the Scottish hospitality sector, and for retail premises in England.
Three million in funding was also renewed for the Retail Crime Taskforce, aimed at reducing the impact of retail crime on business and communities in Scotland. As the number one issue facing many retailers, however, SGF believes that much more needs to be done to reverse the upsurge in crime hitting the sector.
SGF Chief Exec, Dr Pete Cheema, said: “Since Covid, SGF and our partners across the Scottish retail sector have been urging the Scottish Government to match reliefs for retail business provided elsewhere in the UK. This year, the Finance Secretary has finally taken a step in the right direction.
“Convenience stores and local shops are at the heart of their communities and are part of the lifeblood of our economy. However, Scottish businesses have consistently paid more, putting many businesses at a disadvantage to their counterparts south of the border.
“Nonetheless, one area where much more investment is needed, is tackling the devastating impact of retail crime. Police Scotland’s Retail Crime Taskforce has done remarkable work in its first year, with a very limited budget. Now that resource needs to be expanded so that it can deliver a genuine and meaningful long-term change.”
The Finance Secretary also announced additional transitional reliefs for business paying more after the revaluation, alongside the continuation of the Small Business Bonus Scheme for a further three years. Meaning small businesses (under £20,000 Ratable Value (RV)) will continue to benefit from tapered reliefs of up to 100%.