SRC urges Scottish parliament to pass budget supporting retailers

In its submission sent last week to Scottish finance secretary Shona Robison, the consortium said retail is a powerhouse industry facing tough trading conditions, an uncertain economic outlook and spiralling costs and higher shop prices as a result of the last UK budget.

Retail is Scotland’s largest private sector employer providing 228,000 jobs directly with thousands more in the supply chain. However, recent data shows retail sales struggling with shopper footfall becalmed.

SRC’s submission contains 17 recommendations aimed at supporting consumer spending, helping stores invest, tackling crime against retailers and making the cost of operating government more affordable, according to a release from the British Retail Consortium (BRC).

It comes ahead of the expected unveiling later this year of the devolved administration’s £60-billion budget for 2026-27 and Spending Review.

SRC suggested that the government should unequivocally commit to no new levies on retailers; address any gap in Scottish government finances through spending restraint and cutting the cost of operating government rather than tax rises which stymie economic recovery; and ensure all retailers in Scotland benefit from a meaningfully more competitive business rate than England.

It urged the government to take a sceptical approach to any further tax devolution to councils which might affect consumer spending or increase retailers’ costs; narrow income tax divergence between Scotland and the rest of the United Kingdom; and enhance funding for the Retail Crime Taskforce to prevent shoplifting, deter abuse towards shop workers and aid the vitality of high streets.

“Government-mandated costs on retailers are mounting, with the rises in non-domestic rates and employers’ national insurance contributions adding £200 million to Scottish retailers’ outgoings this year. Compounding the costs crunch retailers face must be avoided," said SRC director David Lonsdale.

ALCHEMPro News Desk (DS)