Leading Trade Associations call on Finance Secretary to match UK Govt support on Business Rates

A partnership of leading industry bodies representing Scottish Retail, Hospitality & Leisure, have delivered a joint submission to the Finance Secretary today. The letter calls on the Scottish Government to act urgently and deliver on the promise of a New Deal for Business, by committing to match the 75% rates relief available in Wales and England.

Representing tens of thousands of businesses, which employs between 4-500,000 workers across Scotland, the Scottish Grocers’ Federation, Scottish Retail Consortium, British Independent Retailers Association, Booksellers Association, UK Hospitality Scotland, Scottish Licensed Trade Association and Scottish Tourism Alliance have teamed up to highlight the significant challenges facing many small and medium size high street businesses.

Alongside the reduction in footfall due to the cost-of-living crisis, many businesses continue to be hit by debilitating energy costs, stubbornly high inflation, and an ongoing disruption to supply chains.

Last month, the First Minister announced plans for a New Deal for Business and committed to improving engagement with key sectors of the Scottish Economy. Meanwhile, the Deputy First Minister and Cabinet Secretary for Finance has called for businesses to have their say on the 2024-25 Scottish Budget.

SGF Chief Executive, Dr Pete Cheema OBE said: “Combined, the retail, hospitality, and leisure sectors directly employ up to half a million people in Scotland. They are a vital part of many local communities across Scotland. As both local employers and economic multipliers.

“Producers, suppliers, and households all benefit when local high streets are thriving. However, many of the businesses we represent are struggling to make ends meet, and they urgently require similar support to the relief provided in England.  

“Scottish businesses have been trading at a disadvantage to our counterparts south of the border for years, that is why representatives from across our sectors have joined together to send a very clear message to the Scottish Government.

“We need to see urgent and meaningful action on the New Deal for Business, and it is essential that the next Scottish Budget offers comparable rates relief to the support available elsewhere in the UK.”

In the Autumn Statement 2022, the Chancellor of the Exchequer committed to provide 75% business rates relief for properties in the retail, hospitality, and leisure sectors for the 2023 to 2024 tax year, up to a maximum of £110,000 of relief per business. The Welsh Government adopted a similar policy.