Retail bosses demand SNP action on tax and spending cuts ahead of budget

Ahead of the draft Scottish Budget in December and MSPs returning from summer recess this week, the Scottish Retail Consortium has set out priorities for the Scottish Government to support.

The organisation has written to SNP Finance Secretary Shona Robison, warning that “trading conditions remain tough and the economic outlook is uncertain”adding that “retail sales growth in Scotland has flatlined over the past eighteen months and shopper footfall has failed to shine”.

The organisation has called for a pledge for no extra levies to be placed on retailers, to cut spending on public services to cover budget deficits instead of hiking taxes and ensure businesses in Scotland enjoy a meaningfully more competitive business rate than England.

READ MORE: The ‘harsh truth’ facing Scotland’s retailers as high street spending stalls

The Scottish Retail Consortium has also called for SNP ministers to take “a sceptical approach” to devolving further tax powers to councils, to narrow the tax divergence with the rest of the UK and enhance funding for the Retail Crime Taskforce.

It is unlikely that some of the suggestions will be considered by the Scottish Government.

David Lonsdale, director of the Scottish Retail Consortium, said: “Retailers make a significant economic and social contribution to Scotland but are straining to trade profitably against a backdrop of flatlining retail sales, flaccid levels of shopper footfall, and faltering consumer confidence.

“Meanwhile, government-mandated costs on retailers are mounting, with the rises in non-domestic rates and employers’ national insurance contributions adding £200 million to Scottish retailers’ outgoings this year.

“Compounding the costs crunch retailers face must be avoided. Last year’s Scottish Budget contained some positive announcements however we’re seeking bolder action this time to support consumers, helps retailers invest in retail destinations, further tackle retail crime, and cut government running costs.

“The focus has to be on lifting private sector growth and making Scotland the best place in the UK to grow a retail business. It’s imperative that the devolved administration and MSPs from across the Scottish Parliament work collegiately to pass a pro-growth Budget. After all, an expanding economy is a prerequisite for raising living standards, more well paid jobs, and for generating the revenues to allow policymakers to enact social and environmental change.”