SGF and NFRN are among 35 leading business representative groups and industry bodies to have jointly written to Deputy First Minister and Finance Secretary Shona Robison asking her to freeze the business rate in the coming financial year.
The organisations represent a broad cross section of Scottish industry and commerce, including retailers, wholesalers, manufacturers, tourism, leisure, and commercial property.
The letter says: “After three and a half turbulent years of the pandemic and costs crunch the fact is trading conditions remain challenging, the cost of doing business remains elevated, and the near-term economic outlook is weak. We therefore ask that Scottish Ministers prioritise a freeze in the headline business rate poundage – which is already at a 24-year high – in the coming financial year. This would aid firms with the costs crunch, help them keep down prices for customers, and support business investment and competitiveness.”
The collective call comes ahead of the unveiling of the Scottish government’s Budget on 19 December, which is expected to set the business rate and associated reliefs and thresholds for the 2024-25 financial year.
Scotland’s business rate is already at a 24-year high and a fifth higher than at the start of the previous decade. If increased in line with current CPI inflation this could see ratepayers across Scotland face an extra £205m on their rates bills from next Spring. This would be at odds with the Scottish government’s recently stated aim to use business rates to “boost business”.
The letter was signed by Scottish Retail Consortium, NFRN, Revo, The Horticultural Trades Association, The Wine & Spirit Trade Association, Scottish Financial Enterprise, CBI Scotland, UK Warehousing Association, Scottish Chambers of Commerce, Scottish Grocers’ Federation, UK Cinema Association, Scottish Tourism Alliance, ukactive, British Independent Retailers Association, Booksellers Association of the UK and Ireland, Company Chemists’ Association, Scottish Land & Estates, Scotch Whisky Association, News Brands Scotland, FSB Scotland, IoD Scotland, Scottish Property Federation, Federation of Master Builders, Print Scotland, Retra, Salmon Scotland, Scottish Engineering, Music Industries Association, Publishing Scotland, Scottish Wholesale Association, Food & Drink Federation Scotland, UKHospitality Scotland, Scottish Beer & Pub Association, The Scottish Licensed Trade Association, and Homes for Scotland.
