Call to put town and city centres ‘at the heart of economic decision making’

A trade association has called for the next Scottish government to put town and city centres and retail destinations at the “heart of economic decision making”.

The Scottish Retail Consortium (SRC) has published a manifesto ahead of next year’s Scottish election calling for the next government to make high streets a priority.

Publishing the first of three manifestos, the SRC released Scotland’s Future High Streets, which shares the challenges that towns and city centres are facing across the country and the policy solutions the retail industry believes are necessary.

The SRC suggested a five-point plan which includes a push to make Scottish high streets competitive to invest in through a meaningfully more competitive business rate than England and making new and refitted stores simpler through an improved planning and building warrants system.

It has also suggested investment in other areas it believes would help the retail industry.

This includes combating retail crime through increased investment in Police Scotland and introducing a directly elected Scottish police and crime commissioner to replace the current Scottish Police Authority and improving transport infrastructure for private and public transport to make town and city centres more accessible.

David Lonsdale, director of the SRC, said: “This five-year parliamentary session has presented the Scottish retail industry with a series of almost overwhelming challenges.

“From starting in the midst of Covid lockdowns and restrictions to the supply chain disruption that followed the pandemic and the outbreak of the conflict in Ukraine to the ongoing economic funk; the first half of this decade has been severely difficult for the industry.

“Retailers have had to adapt to this new economic norm. That means fewer stores operating from fewer locations with decisions made even more on the return on investment. There has been a complete shift with almost all retailers of scale now operating online.

“Consumer behaviour has also changed, with shoppers more and more willing to go out of town or online as opposed to shopping in store, with greater emphasis on value and purchases of pre-loved items.”

Research provided by the SRC shows that between July 2024 and July 2025 shopper footfall to retail destinations in Scotland fell by 0.9% on average. Visits to shopping centres also fell by 0.9%.

The research also shows that government-imposed costs of operating retail stores in Scotland increased by nearly £200 million in 2025, as a result of increases in business rates and employers’ national insurance.

Mr Lonsdale said: “That is the stark reality and backdrop to which policymakers must turn if Scotland’s remaining retail high streets are to thrive.

“The next Scottish government needs to put town and city centres and retail destinations at the heart of economic decision making. That should include reducing the cost of business, making it easier to visit and to invest in the high street, and ensuring it’s safe for shoppers and consumers.

“Scotland still has some wonderful, vibrant, diverse high streets which are enjoyed by consumers and deliver for retailers. By adopting our recommendations, we believe those high streets can thrive in the second half of this decade and beyond.”

Deputy First Minister Kate Forbes said: “The Scottish Government is working closely with businesses to drive economic growth and prosperity in our towns, cities and communities.

“Our competitive non-domestic rates regime in 2025-25 includes a freeze to the Basic Property Rate, delivering the lowest such rate in the UK for the seventh year in a row and maintaining the lowest property tax rate in the UK for over 95% of non-domestic properties in Scotland.

“The Budget also provides a package of reliefs worth an estimated £733 million this year, including the Small Business Bonus Scheme which continues to be the most generous of its kind in the UK.

“However, we are doing all of this without the full economic powers needed to fully address the issues facing Scotland’s economy.

“We need decisive action from the UK Government, including a reversal of its damaging decision to increase employers’ national insurance contributions which is severely hampering business confidence, investment, growth and costing jobs.”

Scottish Conservative business and economy spokesman Murdo Fraser said: “The anti-business policies of the Labour and SNP governments are hammering high street businesses and, as shops lie empty, the wider economy.

“The double whammy of the nats’ failure to pass on business rates relief and Labour’s national insurance hike has stalled growth, led to companies folding and cost jobs.

“We need an urgent change of focus to make businesses and growth the centrepiece of government policy.

“Only that will provide the revenue essential to fund frontline public services and revitalise our town and city centres.”