Scottish Retail Consortium urges MSPs to back ‘imperfect’ budget

The Scottish Retail Consortium, the trade body representing retailers in Scotland, has urged members of the Scottish Parliament to vote for the Scottish Government’s budget. 

The industry body said that while the budget does not make the cost of business cheaper there is much in it the sector supports.

The Scottish Retail Consortium (SRC) said that while the budget was “imperfect” there was much in it that businesses support.

The budget, which was set out by Finance Secretary Shona Robison in December, is expected to be voted on in the coming weeks. However, the SNP, which is running a minority Government, will need the support of at least one other party to pass its tax and spending plans.

While delivering her budget, Robison pledged not to raise income tax for the remainder of the Parliament, which the SRC welcomed.

he SRC also praised the Finance Secretary for the freeze on property rates and for not going ahead with the mooted business rate surtax on grocers. It welcomed the £3 million in Police Scotland funding ringfenced for action against retail crime which the SRC said has soared to become a “scourge” in the industry.

However, it criticised the budget for not having “any measures” to reduce the cost of doing business in Scotland. It said it comes at a time that retailers face “spiralling cost pressures” and the UK Government’s “colossal” national insurance hike.

The trade body said retailers were also disappointed over the rise in business rates for medium and larger-sized firms and it said it was sceptical over plans to consider additional tax powers for local authorities, such as “wealth taxation”, which it described as “somewhat ominous”.

David Lonsdale, Director of the Scottish Retail Consortium, said: "Whilst the proposed Scottish budget is far from perfect and has flaws, there is much in it that retailers can get behind.

"Robust debate and scrutiny of the budget over the coming weeks is both right and necessary, however, our hope is that ministers and MSPs can work collegiately to pass the budget without diluting the pro-growth measures during parliamentary horse-trading.

"A failure to do so risks adding a thick layer of uncertainty at a challenging time for retail."