The trade body for Scotland’s retail sector says the country’s business rates system is “no longer fit for purpose” and is urging reform ahead of next year’s Holyrood election.
In the first of a series of policy papers, published today, the Scottish Retail Consortium (SRC) says urgent action is needed to reduce store closures, support investment and protect jobs.
The paper, Holyrood 2016: Business Rates, proposes more frequent revaluations and relief for firms whose premises are being refurbished.
SRC also proposes administrative improvements, including standardised online billing.
It says the current system is in “serious need of fundamental reform” and calls for a thorough debate about how the next administration can raise growth and productivity.
Speaking on the eve of the document’s launch, SRC director David Lonsdale said: “The system is a tax on jobs and growth, undermining investment in property – especially in town centres and high streets.
“There is no greater pressing issue for the retail industry in Scotland than the prohibitive burden of business rates, which has moved in the eyes of many retailers from an irritation to mission critical.”
Rates paid by Scottish retailers increased by 30% between 2009 and 2014, but the number of shops dropped by 1,800, according to SRC.
Colin Borland, head of external affairs for the Federation of Small Businesses in Scotland, said rates were a “bone of contention” for big retailers and the hospitality and tourism sector.
Mr Borland added: “We need to sketch out realistic alternative to the rates system over the next five years to work out who the winners and losers would be and what a fairer system would look like.”
Deputy First Minister John Swinney said: “We deliver a business tax that is already the most competitive in the UK.”