One bad Budget could spell end of high street as we know it, says retail body

One bad Budget could be the end of the high street as we know it, a retail body has claimed, as the Government is set to lay out its spending plans.

The Scottish Retail Consortium (SRC) has called for a permanent relief to business rates for retail businesses, along with a pledge not to levy any new taxes on those firms.

The SRC has also urged the Government to lay out a plan which would end the income tax divergence between Scotland and the UK in the top three tax bands.

Speaking ahead of Finance Secretary Shona Robison’s announcement to Holyrood on Tuesday, SRC director David Lonsdale said: “Retailers are the heartbeat of many of our communities.

“Yet this last year saw retailers face the twin threats of middling sales performance and ever-increasing costs as both businesses and households struggled.

“That has left many shopkeepers walking a tightrope to remain viable. With the Scottish Government controlling many of the key economic levers, one bad budget could see us lose our high streets as we know them and lead to despair for the retail industry and other high street businesses.”

He added: “The retail industry has outlined clear realistic policies we hope to see delivered by the Finance Secretary.

“Unless business rates are reduced we could see Scottish retailers carrying a heavier business rates burden than their counterparts down south with investment-sapping consequences for the health of our high streets and the jobs and opportunities they offer.

“That’s why we hope to see a permanent business rate discount for all shops which is at least as competitive as England.

“We’re also seeking increased funding to tackle retail crime and action to protect consumers from further tax rises.

“Times are tough on Scotland’s high streets.

“This Scottish Budget must be part of the solution not the problem.”

A spokesman for the Scottish Government said: “We will continue to work closely with businesses and the retail sector to drive economic growth and prosperity in our towns, cities and communities.

“Scottish tax policy for 2026-27 will be announced at the Scottish Budget on January 13.

“We continue to call on the UK Government to reverse the damaging decision to increase employers’ national insurance contributions, which acts as a tax on jobs.”