Retail groups urge Scottish Government to match UK rates relief
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Nine business groups representing the retail industry have jointly written to the Scottish Government’s Finance Secretary, Shona Robison MSP, asking her to ensure retailers in Scotland are awarded rates relief for 2025-26.
It follows the decision unveiled in the UK Budget to award the retail, hospitality and leisure sectors in England a temporary and capped rates relief for the coming year.
The call from retail representatives comes in the wake of the UK Government’s colossal increase in employer’s national insurance contributions which is set to cost retailers in Scotland £190 million each year, starting in April. The collective call comes ahead of the expected Stage 1 debate and vote on the Scottish Budget at Holyrood next week.
The joint letter was submitted on Monday to the Finance Secretary. The text of the letter was:
Dear Finance Secretary,
Retail, hospitality and leisure sectors’ rates relief
We welcome the First Minister’s support for boosting economic growth and the pledge in his Programme for Government to create the right conditions for business investment.
Given this, we write jointly to encourage you in your Scottish Budget on 4 December to ensure that retailers in Scotland benefit from temporary business rates relief. We understand that Barnett Consequential monies have been forthcoming as a result of the decision of the UK Government on retail, hospitality and leisure relief in England.
This is a challenging time for retailers in Scotland. Retail sales have flatlined for the past five months, the growth in shopper footfall is meagre at best, yet statutory costs are spiralling. The latest example of the latter is the Chancellor’s decision to increase employer’s national insurance contributions. This will disproportionately impact retail as it is the country’s largest private sector employer and because retail employs large numbers of people in entry-level and part-time roles. The sheer scale of the tax hike and short timeframe for implementation has fundamentally changed the outlook, adding £190 million in extra costs onto Scotland’s retailers each year.
Providing rates relief would help smaller stores here in Scotland alleviate the UK government’s tax hike as well as support our hard-pressed retail destinations. Such a decision would be warmly welcomed. It would also send a positive signal at a time when the UK administration has said it recognises the rates burden on retail is disproportionate and envisages introducing a permanent business rates reduction for the sector from Spring 2026 onwards.
Yours sincerely,
David Lonsdale, Director, Scottish Retail Consortium
James Barnes, Chairman, The Horticultural Trades Association
Lesley Cameron, Chief Executive, Scottish Bakers
Dr Pete Cheema OBE, Chief Executive, Scottish Grocers’ Federation
Andrew Goodacre, Chief Executive, British Independent Retailers Association
Meryl Halls, Managing Director, Booksellers Association of the UK & Ireland
Caroline Larissey, Chief Executive, National Hair & Beauty Federation (NHBF)
Shahid Razzaq, National President, The Federation of Independent Retailers
Anthony Short, Executive Director, Music Industries Association
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