In “Road to Recovery”, an eight-page submission to the Scottish Government’s Advisory Group on Economic Recovery, the SRC has highlighted the pressures facing the industry and called for business burdens to be lightened in the immediate and medium-term. 

The submission also calls for short term economic stimulus to encourage consumer spending, which could include:

• Targeted income tax or land and business transactions tax cuts to support ordinary workers.
• A short life scrappage scheme to replace inefficient household items with modern more environmentally-friendly models.
• Direct cash payments to less affluent consumers.
• Encouraging consumers to return to town centres through committing local authorities to abolish town centre parking charges.

The Government should also look to support retailers and other businesses by:

• Introducing a one-year moratorium on new public policy initiatives unrelated to COVID-19, and a delay on implementing existing measures to allow retailers to focus on restructuring their businesses to manage physical distancing and other new public health actions.
• Tapering the end of non-domestic rates relief at the end of the 2020/2021 financial year to prevent an immediate spike in costs for retailers.
• Ensure Local Authorities work with businesses to develop clear plans to ensure city and town centres have the right infrastructure and management to operate whilst physical distancing rules remain in place.

Ewan MacDonald-Russell, SRC head of policy, said: “The Scottish economy is already facing unprecedented turmoil. Our retail sales figures saw a 40% drop in April, and there is a slew of evidence which indicates retailers will face the toughest trading conditions this century once the country emerges from lockdown. The Scottish Government must take bold and imaginative steps to deliver an economic stimulus package which will drive the economy on the road to recovery.

“That should include revisiting policy measures to ensure they are still relevant for the new economy, a package of short term measures to build consumer confidence and encourage shoppers back into town and city centres, and steps to reduce costs and burdens on businesses who are under immense strain.

“Whilst the days ahead will be difficult, Scotland’s retailers are robust and resilient. We are ready to play our part in rebuilding Scotland’s economy for the future. We hope the proposals in this paper will help to spark the debate on what the road to recovery looks like.”

• Read all of our articles relating to COVID-19 here.