The Scottish Retail Consortium (SRC) is urging Ministers and MSPs to work together to pass a pro-business Scottish Budget in a timely manner that avoids adding unwarranted costs onto business, and supports economic growth.
It comes a week before the expected Stage 1 debate and vote on the Scottish Government’s Budget at Holyrood.
SRC sent its detailed Scottish Budget recommendations paper to Ministers and MSPs in September. It contained suggestions for cutting the cost of government, delivering competitive taxes and regulation, and combating crime against retailers.
However, last week the trade body wrote to Finance Secretary Shona Robison to say that the sheer magnitude of the decision in the UK Budget on employer’s national insurance contributions had ‘fundamentally altered the outlook’, as it would add £190m each year to Scottish retailers’ costs. SRC said that the tax hike would have a disproportionate impact on the retail industry which is Scotland’s largest private sector employer.
The letter implored the Finance Secretary to ditch the mooted business rate surtax. Furthermore, it asked for a focus on competitiveness: restoration of the level playing field with England for firms paying the Higher Property Rate; a blunting of any inflationary uplift on Scotland’s three business rates; and use of Barnett Consequentials from reductions in English rates to reduce rates here.
Speaking ahead of the Scottish Budget, the Director of the Scottish Retail Consortium, David Lonsdale, said:
“The parliamentary arithmetic suggests that more than one political party will have to support the Scottish Budget this year. Whilst MSPs will rightly and robustly scrutinise the Scottish Government’s tax and spending plans its vital politics doesn’t get in the way of ensuring a Budget that delivers for Scotland’s businesses. In these unsettling times when growth is weak, retail sales are flatlining, and taxes and other statutory costs are spiralling, businesses crave certainty and predictability.
“We therefore hope Scottish Ministers will bring forward a pragmatic pro-business Budget which doesn’t unfairly increase the cost of doing business and prioritises competitive business taxes. In return that should maximise the chance of a collegiate approach amongst Government and Opposition MSPs which would ensure that a pro-growth and business friendly Budget can be passed quickly without delay.
“Any failure to pass a Budget in good time would add a thick layer of uncertainty at an already challenging time for retail. We hope our political parties will collectively rise to the challenge.”
