Scottish business tax relief criticised as inadequate by retailers consortium

David Lonsdale, director of the SRC, said: “The underwhelming rates relief offered for 2022-23 is little more than a pale imitation of the UK Government’s own disappointing scheme; and will do little to help retailers who continue to be battered by the fallout from the Covid-19 pandemic.”

Londsdale said that there was little to help consumers either, despite the prospect of more inflation.

He added: “The conclusion one could draw from this budget was that Scotland’s retailers will need to recover alone.”

Over the last two years, retailers have had 100% rates relief to help them deal with Covid and while this ended in July for English businesses it will continue until next April in Scotland.

After that, there will be 50% relief for the first three months of 2022/23, capped at £27,500 per ratepayer.

Londsdale said: “The three months of relief will prove beneficial to the smallest businesses.

“However, the cap being applied means Ministers have fluffed the opportunity to reduce the rates bills of medium-sized and larger retail chains who are not only essential to healthy high streets and city centres but who pay the lion’s share of retailers’ business rates and employ most staff.

“This, coupled with the reinstatement of full business rates from July and the reinstatement of the higher property rate surtax, means we are unpersuaded the measures are enough.

“Indeed, the decision not to be bolder may well need to be reviewed if trading conditions don’t pick up.”