Finance Secretary Shona Robison resisted calls to match the 75% relief on business rates seen in England as she unveiled the Scottish Government’s budget for 2024-25 yesterday (19 December).
In what was her first budget statement, Robison said that – unlike the UK Government – she was not happy to provide tax cuts on the back of real-terms cuts to the NHS.
She did, however, announce a rates freeze for businesses with a rateable value up to and including £51,000.
The Small Business Bonus Scheme will also remain in place, taking 100,000 properties out of the rates system altogether.
A new 45% income tax band will be rolled out for people earning between £75,000 and £125,140, while the top rate – for those earning more than £125,140, goes up from 47% to 48%.
And, with retail crime at record levels, Police Scotland will benefit from a £75.7m funding increase to support frontline services.
Other measures announced included a government-funded freeze on Council Tax, an up to £90m investment to support people who want to get back to work, an additional £550m for the NHS in Scotland, and an extension of the free school meals programme.
The Scottish Grocers’ Federation (SGF) welcomed several of the measures, most notably the rates freeze, but warned that the new 45% tax rate could stifle the ability of businesses to attract key personnel, thus hampering future investment and business growth.
The trade association also expressed concern about the lack of support for retailers in the budget. SGF Chief Executive Pete Cheema commented: “Convenience stores are significant economic multipliers, providing lifeline services to the areas they serve, so it beggars belief that the Scottish Government has once again failed to pass on the 75% relief for retail, seen elsewhere in the UK.
“This is an incredibly challenging time for many businesses, and for our sector. It’s past time that ministers recognise that increased taxation alongside a constant conveyor belt of regulation is crippling business growth in Scotland.”
Cheema welcomed the increase in police funding, although he said: “It remains to be seen, however, if the modest increase in resources will have any meaningful impact on the tsunami of crime facing retailers across Scotland.”
