Another damaging blow, as retail passed over for rates relief in Scottish Budget - SGF

The Scottish Grocers Federation has urged the Scottish Government to extend the business rates support for hospitality, announced in the Scottish Budget, to cover retail as well. Replicating the 40% relief announced for retail, hospitality & leisure businesses south of the border, in the UK Budget. SGF also welcomed a direct, although minor, uplift in police resource to target retail crime.

The Cabinet Secretary for Finance and Local Government told members in the Scottish Parliament this afternoon that support available through the Small Business Bonus Scheme would be protected in 2025. Poundage will also be frozen for another year and 40% rates relief announced in the UK Budget will be passed on to the Scottish hospitality only. Leaving key local retailers without the same level of additional support this year.  

On Retail Crime, announcements in the budget were only a partial win for Scottish retailers. SGF welcomed the direct additional funding of £3 million for Police Scotland to tackle the growing issue of retail crime, but also noted that much more will be needed to have a meaningful long-term impact.

SGF Chief Exec, Dr Pete Cheema said: “We are very disappointed that the Scottish Government has failed to recognise the need to support local retail and small businesses across Scotland. Convenience stores provide an essential local service for their communities, and they have a great potential to drive growth across the Scottish Economy. For those reasons, while we welcome the freeze on the basic rate, we are calling on the Finance Secretary to extend the same support on business rates to include retail. To match what is being delivered to both retail and hospitality in England but only hospitality in Scotland. 

“While we welcome the additional direct support for Police Scotland, to get to grips with the devastating impact of retail crime, £3 million will only go so far. Crime is the biggest issue facing our sector. Many stores are facing endemic levels of crime. Not just theft, but violence and abuse on a regular basis. Much more will be needed if we hope to reverse that trend before matters get even worse for staff and businesses. The announcement today may be too little too late and will only go so far to alleviate the pressure on businesses and the Scottish justice system.”