Retailers push Scotland to match rate cuts in England & Wales

Both UK and Welsh governments have acknowledged that retail bears a disproportionately high rates burden and plan to cut bills in the coming year, with the UK Chancellor expected to confirm the reduction for England in this week’s Budget. 

The Scottish Retail Consortium (SRC) has urged the Scottish Government to match these commitments, noting that shopkeepers already contribute about a fifth of all business rates. Scotland continues to levy a higher poundage on medium-sized and larger premises than England, leaving 2,400 stores paying £9 million (~$11.83 million) more annually than their counterparts—£93 million (~$118.11 million) over a decade. Smaller Scottish shops have also missed out on reliefs available in England and Wales, despite associated Barnett funding. 

David Lonsdale, director of the SRC, said “Unless we see action to reduce business rates for all retailers in Scotland then stores here risk being put at a further competitive disadvantage and potentially materially so. It’s not in the interest of Scotland’s economy, nor our high streets and retail destinations, for retail businesses to be incentivised to invest in Sheffield or Swansea over Stirling, Selkirk or St Andrews.”

“The Finance Secretary sets out in the Scottish Budget a concrete plan to permanently reduce the business rate applied to retailers of all sizes. Failure to do so could see consequences for commercial investment and for the condition of Scotland’s high streets, as destinations elsewhere in GB become considerably more attractive and cost-effective locations to trade and invest in.”

“Continued investment is essential to keep shops viable and attractive to customers. If it becomes materially more expensive to run shops north of the border than elsewhere that’s likely to shift investment to other areas. It is up to Scottish Ministers and MSPs to ensure Scotland remains competitive.”

ALCHEMPro News Desk (MS)