Retailers urge MSPs to work together to pass pro-business Budget

A group representing retailers across the country has urged the Scottish Government to pass a “pro-business” Budget this year.

The Scottish Retail Consortium (SRC) said MSPs must avoid passing “unwarranted costs” on to businesses in the Government’s spending plans.

The group urged ministers to cut down costs, deliver “competitive” tax and regulations, and combat crime against retailers.

The call follows a letter from the SRC last week warning Finance Secretary Shona Robison that it remains a “testing time for shopkeepers”.

Ms Robison was told action is needed to reverse a lack of growth in retail sales and falling footfall on the high streets.

It said retail firms are already facing the Chancellor’s hike in employer national insurance contributions, which has “fundamentally altered the outlook” of doing business.

The SRC said the tax increase will cost Scottish retailers £190 million.

David Lonsdale, director of the SRC, said the Scottish Budget must deliver for businesses.

He said: “The parliamentary arithmetic suggests that more than one political party will have to support the Scottish Budget this year.

“Whilst MSPs will rightly and robustly scrutinise the Scottish Government’s tax and spending plans, it’s vital politics doesn’t get in the way of ensuring a Budget that delivers for Scotland’s businesses.

Finance Secretary Shona Robison has been urged to help the struggling retail sector. PA Media

“In these unsettling times when growth is weak, retail sales are flat-lining and taxes and other statutory costs are spiralling, businesses crave certainty and predictability.”

Mr Lonsdale urged all parties to back a Budget that will deliver economic growth.

He added: “We therefore hope Scottish ministers will bring forward a pragmatic, pro-business Budget which doesn’t unfairly increase the cost of doing business and prioritises competitive business taxes.

“In return that should maximise the chance of a collegiate approach amongst Government and opposition MSPs which would ensure that a pro-growth and business-friendly Budget can be passed quickly without delay.

“Any failure to pass a Budget in good time would add a thick layer of uncertainty at an already challenging time for retail.

“We hope our political parties will collectively rise to the challenge.”

A Scottish Government spokesperson said: “The Scottish Budget will prioritise funding to deliver on the First Minister’s priorities, which include growing the economy.

“Concerns have been raised with the UK Government around the rise in employer national insurance contributions, which risks hampering economic growth.

“Ministers are committed to building as broad support as possible across Parliament in order to deliver the forthcoming Budget.

“Engagement with all parties is ongoing ahead of the draft Budget being set out in the Scottish Parliament on December 4.”