Swinney urged to match Chancellor’s ‘real terms business rates freeze’

John Swinney has been urged to pass on the Chancellor’s support for high street firms in England to those in Scotland.

Scottish Labour urged the First Minister’s to match John Healey’s move to raise the threshold for small business rate relief for retail, hospitality, and leisure from £12,000 to £18,000.

The UK Government said the Budget means that all retail, hospitality and leisure properties in England will see their business rates “either frozen in real terms, reduced, or cut to zero”.

Daniel Johnson, Scottish Labour’s economy spokesperson, urged the Scottish Government to freeze rates in real terms for all retail, hospitality and leisure businesses for two years.

The party said rates relief in England was “significantly more generous” than in Scotland with small firms only receiving 100% rates relief if their rateable value is less than £12,000.

Mr Johnson said: “This UK Labour Budget backs England’s high streets by introducing a two-year business rates freeze – Scottish high streets deserve the same and John Swinney should follow suit in the Scottish Budget.

“Failure to follow the changes announced by the Chancellor will mean thousands of Scottish businesses will continue to pay rates and miss out on much needed relief.

“I welcome that the Chancellor has been clear that vape shops will not qualify for business rates relief, focusing support on local high street businesses such as retailers and grocery stores.

“John Swinney must follow suit in the upcoming Scottish Budget, set out his plan for business rates, and provide urgent support for Scotland’s high streets.”

The Scottish Retail Consortium (SRC) said a “real terms freeze” in line with inflation, which would see rates rise by about 3.5%, would cost businesses £22 million in the coming year.

Director David Lonsdale said: “A chunky £22 million uplift in the business rate is on the cards for Scotland’s retailers next spring, unless action is taken.

“Piling yet more taxes onto retailers, on top of the swathe of tax and regulatory burdens the industry has been lumbered with of late, only serves to make it more difficult for retailers to invest in our high streets, create job opportunities, and keep down prices on shop shelves.

“In her upcoming Scottish Budget, the Finance Secretary should rule out any increase at all in the business rate paid by retailers and begin to deliver a level playing field with England for all Scottish stores.”

Minister for public finance Hannah Mary Goodlad said: “The Scottish Government is providing a package of reliefs worth in excess of an estimated £870 million in 2026-27 and almost all – 96% – of retail, hospitality and leisure businesses in Scotland can benefit from some form of rates relief.

“Decisions will be set in the Scottish Budget in the usual manner and the Deputy First Minister has already committed to a comprehensive review of non-domestic rates.”