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Scottish retailers urge govt to introduce permanent business rates cut

10 Dec '25
2 min read
Scottish retailers urge govt to introduce permanent business rates cut
Pic: Shutterstock

Insights

  • Scottish retail leaders have urged the government to introduce a permanent business rates discount in line with England's 10 per cent relief.
  • In a joint letter, 14 retailers warned that higher costs risk diverting investment elsewhere.
  • They said a discount would support refurbishment, new stores, and jobs, strengthen high streets and attract retail investment destination.
Scotland’s retail leaders have urged the Scottish government to introduce a permanent business rates discount, warning that without action the sector risks losing investment to other parts of the UK. A joint letter, coordinated by the Scottish Retail Consortium (SRC), was sent to Finance Secretary Shona Robison MSP, calling for a retail-specific reduction similar to the 10 per cent relief confirmed for England from April 2026.

The appeal represents 14 Scottish headquartered retailers operating 295 stores across the country, including schuh, Rox, The House of Bruar, Wilkies, and Begg Shoes. Signatories argue that maintaining higher tax burdens in Scotland could discourage future growth and undermine the competitiveness of high streets and shopping destinations, British Retail Consortium (BRC) said in a press release.

David Lonsdale, director of the SRC, said the message from retailers was clear and urgent. He emphasised that Scottish ministers have previously demonstrated agility on business rates policy—most notably on revaluation reforms and shelving an earlier proposal for a grocery surtax. “Hopefully, the Finance Secretary will take heed and act in her Budget next month to protect Scotland’s retail industry,” he said.

The letter highlighted the sector’s role as Scotland’s largest private employer and stresses that a permanent discount would support store refurbishments, new openings, and additional hiring. Investing in physical retail, the signatories argue, is vital for local economies, helping maintain customer footfall and sustaining surrounding cafés, restaurants, and service businesses.

Retail leaders warned that a failure to align rates policy with England could lead to capital being redirected elsewhere in the UK. They also frame the proposed discount as a strategic step towards realising Scotland’s stated ambition of becoming the best place in the UK to grow a retail business.

The signatories expressed hope that the forthcoming Scottish budget will match or exceed the commitment made in England. Such a move, they say, would send a strong signal that Scotland values its retail workforce, supports town centre regeneration, and recognises the importance of the sector to its economic resilience.

The Scottish government is expected to announce its budget proposals next month.

ALCHEMPro News Desk (SG)

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