The Scottish Grocers Federation is urging the Scottish Government to protect small businesses in Scotland by passing on reliefs announced in the UK Budget, taking 70,000 businesses in England out of paying business rates altogether.
The measure increases the threshold for small business rate relief for retail, hospitality and leisure businesses from £12,000 to £18,000. Meanwhile, retail in Scotland only receive 100% reliefs if they have a Ratable Value (RV) below £12,000. With businesses up to £20,000 RV receiving declining tapered support from the Small Business Bonus Scheme.
SGF also called on the UK Government to take a measured approach to future increases to both the National Minimum Wage and the National Living Wage, with a further hike announced for 3.9% in 2027/28. Further increasing the pressure on the convenience sector and undermining the viability of many local stores.
SGF Chief Exec, Dr Pete Cheema OBE, said: “Many Scottish retailers are already operating at a commercial disadvantage to counterparts south of the border.
“With historically higher poundage than elsewhere in the UK, and missing out on significant reliefs available to businesses in England and Wales in recent years - that were never passed on to Scottish retailers. Conversely, support available through the SBBS has declined year on year, as more businesses are raised out of the scheme and thresholds remain stagnant.
“The Scottish Government now has the opportunity to right that wrong and provide much needed support for local shops that are at the heart of their communities. By fully passing on the additional reliefs announced today.”
On NLW rises, Pete added: “The minimum wage has almost doubled in the past decade, and businesses can no longer absorb further rises to the cost of employment. The announcement today means fewer local jobs, and a squeeze on stores that are already struggling to make ends meet. That is why we are calling for a long-term measured approach to future increases.”
However, SGF welcomes the retention of the pay differential between workers aged 21 and over and those under 21. Maintaining this distinction helps support employment opportunities for young people entering the workforce for the first time, while easing cost pressures on employers.
