Scotland’s town centers are facing a significant threat of widespread closures unless tax reductions are implemented in the upcoming Budget, as SNP ministers have been cautioned.
A substantial coalition of prominent retailers and trade organizations is advocating for a lasting reduction in business rates for Scottish shops, akin to the relief available to their counterparts in England.
Among the 37 advocates is the chief of the major toy chain, The Entertainer, who has issued a stark warning about potential store closures and a decline in new store openings if no measures are taken.
Business leaders are also intensifying calls to halt a planned revaluation of properties that could nearly triple the business rates for some companies, amid grim predictions that this could push firms ‘to the brink’ and endanger thousands of jobs.
The campaign, spearheaded by the Scottish Retail Consortium and supported by retailers such as The Entertainer, Dobbies Garden Centres, Begg Shoes, Schuh, Sterling Home, The House of Bruar, and Wilkies, alongside numerous trade associations and business improvement districts, is advocating for a permanent business rates cut for the sector.
They are collectively urging for measures similar to those announced in England, where most retailers will benefit from a permanent 10 percent reduction in business rates starting in April.
Andrew Murphy, chief executive of The Entertainer, said the move down south will allow firms to keep stores open, invest in refurbishments and maintain staffing levels, but added: ‘Despite the loud calls from across the business community, there is as yet no indication that Shona Robison, the Finance Secretary, is prepared to level the playing field with England.
‘Failing to do so would be a huge mistake. Retail remains in a period of extreme jeopardy.
Princes Street in Edinburgh where some business rates could triple
‘In tough times we often choose to save our money, not spend it, shoring up cash balances and hunkering down to weather the storm.
‘If Scotland doesn’t choose to be at least as competitive as England, more shops will close and fewer new ones will open.’
The Daily Mail has been running a ‘Save Our High Streets’ since 2018 highlighting the growing strain on shops which has caused a blight on many town centres following a large number of closures.
David Lonsdale, director of the Scottish Retail Consortium, said: ‘A growing chorus of voices from across industry, business improvement districts, and trade unions are calling on ministers and MSPs to introduce a permanent business rate discount for all retailers in Scotland, one that at the very least matches the discount on offer to retailers in England from April.
‘Hopefully, the Finance Secretary will heed this unequivocal message and act in her Budget to protect Scotland’s high streets and town and city centres.’
Ministers are also under growing pressure to call a halt to a revaluation of the rateable values of business premises, which will cause eye-watering increases in business rates for some firms.
The Scottish Chambers of Commerce highlighted cases including a rural hospitality firm in the Highlands which warned that its business rates bill is set to rise from £6,000 in 2020 to between £8,000 and £11,000 following a 2023 revaluation and now £30,000 under the revaluation due to come into force in April.
It also highlighted a recreation business in Falkirk which warned that its bill will rise by 75 per cent to £350,000 under the proposals, which it said ‘puts 50 jobs at this site at real risk’.
Liz Cameron, director and chief executive of the Scottish Chambers of Commerce, said: ‘In the current business environment sudden increases of this scale – in some cases approaching 300 per cent – are simply unaffordable.
‘Many of our members are already struggling with tight margins, and dramatic jumps in rateable values will push otherwise viable businesses dangerously close to the brink.
Scottish Tory finance spokesman Craig Hoy said the SNP government need to ‘wake up’ to the the crisis facing Scottish businesses
Retail bosses have demanded Finance Secretary Shona Robison take action in next week’s Budget
‘This isn’t sector-specific. It affects every business, in every sector, in every corner of Scotland. The message from our members is stark: there will be job losses if these increases go ahead unchecked.
‘We are already seeing investment decisions delayed, cashflow squeezed and employers forced to reconsider their staffing levels.
‘At a time when businesses need stability and support from government, this approach risks becoming a zero-sum exercise that damages confidence and stalls economic growth. Without urgent action in next week’s budget, viable businesses will close and jobs will be lost.’
The Scottish Conservatives also warned Holyrood ministers that they risk killing businesses unless they ditch ‘devastating’ hikes in their Budget.
Finance spokesman Craig Hoy said: ‘SNP ministers need to wake up to the magnitude of the crisis facing Scottish businesses and ditch their devastating plans now.
‘Rates rises on this scale are completely unaffordable and delusional. If they go ahead, it will be game over and thousands of Scottish jobs will be lost.’
A Scottish Government spokesman said: ‘Decisions on non-domestic rates for 2026/27 will be set out in the Scottish Budget next week.
‘We will continue to work closely with businesses to drive economic growth and prosperity in our towns, cities and communities.’
