Scottish Retail Consortium urges retailers to apply for rates relief

However, under the legislation published earlier this month, those eligible for the rates relief will need to apply to their local authority. This is in contrast to 2020-21, when the relief was awarded automatically.

The SRC was in the vanguard of those campaigning for an extension to the rates relief. So-called non-essential stores are yet to re-open and many face an uncertain future. Even when they are permitted to re-open its likely shops will unable to trade at capacity due to continuing physical distancing restrictions.

David Lonsdale, the SRC’s director, said: “Retailers and other consumer-facing sectors have been left reeling by the impact of Coronavirus. The business rates waiver has been a lifeline for the retail industry, much of which has had to cease trading three times during the pandemic whilst at the same time investing significantly in Covid safety measures and dealing with mounting rents and other bills.

“Scrapping business rates for the coming year provides a much-needed cashflow and confidence boost for the industry – Scotland’s largest private sector employer - as it seeks to emerge from lockdown, recover, and begins to pay down Covid loans and tax deferral schemes. However, it is critical that those eligible apply.”

Retail accounts for 22% of business rates. Looking to party election manifestos and the longer term, Mr Lonsdale added: “We look forward to hearing from the political parties’ in their manifestos about their plans for when rates relief comes to an end next year.

“The recent drumbeat of shop closure announcements should force politicians to address the need to reduce retailers’ rates bills. A concerted plan is required so those bills are permanently put on a more financially sustainable basis, including restoring the level playing field with England on the higher property rate (as recommended by the Barclay Review).

“The business rate has leapt by a fifth since the start of the last decade. We must avoid a return to the pre-Covid situation which saw the tax rate reach a 21-year high, coupled with a decisive action to ensure all premises in Scotland benefit from having the most competitive business rates in the UK.”