The Scottish Retail Consortium (SRC) has called on First Minister John Swinney to make economic growth the “preeminent priority” in his upcoming Programme for Government, with every measure tested against the simple benchmark of whether it will improve Scotland’s economy and business competitiveness.
In a letter sent to the First Minister, the group said an expanding economy was a prerequisite for providing well paid jobs, raising living standards, and the revenues to allow Government to enact social and environmental change.
SRC praised recent decisions to scrap a mooted surtax on grocery stores, freeze the basic property rate, rule out applying fair work conditionality to business rate reliefs, and to fund action to combat shop thefts.
However, the SRC said even before the recent global economic turbulence Scotland’s retailers faced challenging trading conditions, with flatlining retail sales and flaccid levels of shopper footfall. Meanwhile, the cost of doing business continues to spiral, with rises in non-domestic rates and employers’ national insurance contributions adding £200 million to Scottish retailers’ outgoings this year.
SRC warned that any further statutory measures in the Programme for Government “which compound the costs crunch retailers face are almost certainly going to be passed onto consumers through higher prices or reduced choice or convenience”.
SRC is seeking action on regulation and retail crime, including:
- A sustained and enhanced focus and funding on tackling retail crime, to prevent shoplifting, deter abuse towards shopworkers, and aid the vitality of high streets
- A proportionate approach to regulation of food products high in fat, salt or sugar, and towards in-store restrictions on the promotion of alcohol
- The scrapping of plans to introduce a customer levy on single use disposable cups which it believes is deeply flawed
David Lonsdale, Director of the Scottish Retail Consortium, said:
“This is a period of flux and challenge for Scotland’s private sector at a time of weak economic growth, rising statutory costs, and increasing geo-political tensions over trade and tariffs. There is significant value in positioning Scotland as a nation where Government makes stable, predictable, strategic decisions. We therefore hope the First Minister in his legislative programme will continue to adopt the New Deal for Business principles and avoid any unwanted surprises in terms of additional tax or regulatory measures. The focus should be on making Scotland the best place in the UK to grow a retail business.”
