A leading business group has urged the Scottish Government to introduce measures to protect living standards and help shops keep a lid on price inflation.
The Scottish Retail Consortium (SRC) set out a string of suggestions in a 12-page Budget submission – Weathering the Storm – to interim finance secretary John Swinney MSP.
These are:
- Protect less affluent workers by ruling out increases in Scottish income tax rates.
- Consider introducing a Scotland-wide shopper stimulus along the lines of Glasgow’s voucher initiative.
- Rule out any increase in the business rate next spring.
- Speed up restoration of the level playing field with England on the higher property business rate.
- Shelve workplace parking levies for the next 18 months.
- Curb the volume of devolved regulation being implemented or considered.
SRC director David Lonsdale said: “Once again retail is in the eye of the storm, having just come through two incredibly difficult years of the pandemic.
“Shops are facing into significant cost spikes, whilst customers’ disposable incomes are being eroded by inflation – most notably due to the spike in energy prices.
It’s imperative the upcoming Scottish Budget is used to bolster shops and shoppers ahead of the economic tempest.”
“It’s somewhat perverse that retail, which was among the sectors most impacted by Covid, is once again and so quickly set to bear the consequences of this cost-of-living crunch.
“The indications are that it may be a third consecutive tough Christmas trading period.”
Mr Lonsdale added: “This costs crunch comes as retail destinations and city centres continue to struggle in terms of shopper footfall, with fewer commuters and business travellers.
“To help Scottish shoppers and storekeepers weather this storm we are suggesting concerted action to pep up consumer confidence and to cut the cost of doing business.
“It’s imperative the upcoming Scottish Budget is used to bolster shops and shoppers ahead of the economic tempest.
Shielding plea
“In particular, the focus should be on protecting less affluent workers from income tax rises and shielding retailers from a further hike in the business rate.”
The government is due to unveil its tax and spending plans for 2023-24 later this month.
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