David Lonsdale

In the submission, sent to finance secretary Kate Forbes MSP last week the SRC praised government support thus far during the COVID-19 crisis. However, it called for: 

• Non-domestic rates:
  • With revenues down and all stores heavily affected by COVID-19 measures there should be an early commitment to a phased re-introduction of Non-Domestic Rates, via an extended relief or discount rather than an immediate return to 100% reinstatement.
  • A route map to restoring the level playing field with England for the 3000 shops affected by the new Higher Property Rate.
• Consumer demand:
  • Avoid income tax increases whilst Covid-19 restrictions continue.
  • If consumer demand remains weak consider reducing Income Tax for those in the lowest bands or direct cash payments or ‘retail vouchers’ to lower earners.
• Support Town and City Centres through:
  • Reviving the Town Centres Fund on a sustained basis – and allow Business Improvement Districts to access it.
  • Supporting free city and town centre parking in the lead up to Christmas
  • Using Scottish Government marketing to encourage consumers to visit the High Street.
• The Scottish Government, and MSPs, to take a collegiate approach and ensure a Scottish Budget which supports economic recovery is passed swiftly.
• A moratorium on new regulation not related to COVID-19 until restrictions on trading have ended.

Retail is Scotland’s largest private sector employer, providing 230,000 jobs directly. However shop vacancies have leapt to a five-year high, shopper footfall is substantially down on a year ago, and Scottish stores have lost £2.4 billion of revenues over the first seven months of the pandemic compared to last year and have yet to claw their way back to pre-crisis levels.

The four-page submission from the leading sectoral trade body comes ahead of the expected publication later this year of the devolved administration’s tax and spending plans for 2021-22.

David Lonsdale, Scottish Retail Consortium director, said: “In this desperately difficult time businesses are looking for stability and support from the Scottish Government and MSPs. Retailers are focused on surviving rather than thriving under the pressure of depressed consumer confidence and covid-19 restrictions. Retail sales have been negative for eight months, footfall is enormously down, and the shop vacancy rate is at a five-year high.

“Retailers want to see a Scottish Budget which recognises this reality. That should include an early commitment to a phased re-introduction of business rates for retailers, a moratorium on non-COVID-19 regulation, and measures to drive consumer confidence.

“The retail industry has played a crucial role during the COVID-19 crisis to keep Scotland fed and supplied. Our members have invested tens of millions in making stores safe and supporting communities across the country. We will continue to back the government’s work in suppressing the virus – we hope they will back our industry by delivering a Budget which provides stability and support for business.”