In a letter addressed to Deputy First Minister Shona Robison MSP, the SRC emphasises the importance of viewing taxes as a catalyst for private sector investment and economic expansion, rather than merely as a revenue generator.

The business representative group is also seeking greater predictability from ministers on taxation and a commensurate focus on controlling devolved public spending.

Retail is Scotland’s largest private sector employer providing a quarter of a million jobs. However, recent data shows retail sales have been becalmed and with shopper footfall still shy of pre-pandemic levels.

The SRC’s submission recommends:

• Competitiveness should underpin all tax decisions
• An end to ad hoc extra levies and surcharges including scrapping the mooted public health surtax on larger grocery stores
• A tax roadmap for the decade ahead which includes local taxes and simplification of Scottish income tax
• Delivery of the commitment to restore business rates parity with England for medium-sized and larger premises

David Lonsdale, director of the Scottish Retail Consortium, said: “Scotland’s tax landscape has become increasingly cluttered so there is a clear need for a strategic, coherent, and competitive vision which can support economic recovery and stimulate private sector investment. Regrettably the most recent Scottish Budget only further muddied the water.

“The refresh of the devolved tax strategy, which will now be set following the end of the Bute House Agreement, provides a timely opportunity to clear away some of the barriers to commercial investment and growth.

“The Scottish Government has been trying for some time to deliver a New Deal for Business and reset a troubled relationship

“This revamped tax strategy, if aligned to a more balanced approach to upcoming regulation, could be an excellent way to truly deliver on the promise of the New Deal and show Scotland’s businesses that the government is committed to economic growth.”