The Scottish Retail Consortium is seeking the prioritisation of measures to support consumer spending and lift private sector investment in the Scottish Government’s autumn Budget.

In Shaping the Future of Scottish Retail, a 14-page submission sent to the Scottish Finance Secretary this week, the SRC proposes detailed recommendations in key areas affecting consumers and retailers such as Scottish income tax, council tax, business rates, the apprenticeship levy, newly devolved taxes and regulation.

It comes ahead of the expected publication later this autumn of the Scottish Government’s spending and taxation plans for next year, 2018-19.

The retail industry is Scotland’s largest private sector employer, providing 250,000 jobs, and the SRC’s members include well known high street, out-of-town, online and grocery retailers. However Scottish retail is an industry in transition and official data shows a net decline of 1,700 shops and 10,000 fewer retail jobs over the past seven years.

Specifically, the SRC is recommending that Scottish Ministers:

David Lonsdale, director of the Scottish Retail Consortium, said: “With consumers and retailers under pressure from higher inflation, rising costs, and anaemic growth, the Scottish Government has to put growing the economy at the very heart of its next budget.

“First and foremost consumers need to be protected. Disposable incomes are flat, and there is evidence customers are choosing to spend less on discretionary items as household bills continue to rise and wages moderate. The Scottish Government should keep income tax rates down, boosting customer confidence and keeping consumer spending buoyant to support the economy as well as government revenue.

“Retailers too will look for support to help them keep down prices and stimulate investment plans. The Barclay Review rightly pointed out that our current business rates regime is inadequate to the task ahead of helping to lift private sector investment. We want to see progress made on Barclay’s call for an end to the self-defeating Scotland-only rates surcharge on medium-sized and larger commercial premises, and a moratorium on new or additional rates levies. This would keep down the cost of doing business on our high streets and aid more economically fragile communities. Working with firms to ensure they directly benefit from the Apprenticeship Levy monies and more investment in GDP-enhancing infrastructure are also essential to allow retailers to better compete in the digital economy.

“Last year’s Budget contained some positive steps forward, with modest changes to the Apprenticeship Levy and Large Business Supplement thresholds. The SRC hopes the Finance Secretary will be bolder this year, resisting siren calls to raise income taxes and with a further decisive step towards bringing the rates supplement into line with England. With half of VAT receipts being assigned to Holyrood our politicians have a direct stake in facilitating a flourishing retail industry. Retailers will be looking to the Finance Secretary to act when he brings forward his Budget later this year.”