Scottish Retail Consortium Urges Support for SNP Budget
The Scottish Retail Consortium (SRC), a major business organization, is calling on Members of the Scottish Parliament (MSPs) to back the Scottish Government’s budget in an upcoming vote at Holyrood. Despite describing the budget as “imperfect,” the SRC believes there are several aspects that are beneficial for businesses.
Director of the SRC, David Lonsdale, highlighted some positive elements of the budget, such as the freeze on property rates and the exclusion of a proposed business rate surtax on grocers. Additionally, the SRC welcomed the allocation of £3 million in Police Scotland funding to combat rising retail crime, which has become a significant issue for the industry.
However, the SRC criticized the budget for lacking measures to reduce the overall cost of doing business in Scotland, especially at a time when retailers are facing escalating cost pressures due to factors like the UK Government’s national insurance hike.
Concerns and Recommendations from the SRC
The SRC expressed disappointment over the increase in business rates for medium and larger-sized firms and voiced skepticism about potential additional tax powers for local authorities, such as “wealth taxation.” While acknowledging the budget’s flaws, the SRC emphasized the importance of constructive debate and scrutiny to ensure that pro-growth measures are maintained during parliamentary discussions.
David Lonsdale stressed the need for ministers and MSPs to collaborate effectively to pass the budget without diluting its positive aspects. Failure to do so, he warned, could introduce further uncertainty during a challenging period for the retail sector.
Key Highlights of the Scottish Government’s Budget
In addition to addressing business concerns, Finance Secretary Shona Robison’s budget proposals allocated significant funding to key areas like healthcare, social care, affordable housing, and social security. Measures included £200 million to reduce waiting times in the NHS, pay increases for adult social care workers, and support for vulnerable groups through initiatives like the Scottish Child Payment.
Robison’s budget also outlined changes to income tax bands, with adjustments to thresholds aimed at benefiting the majority of Scotland’s taxpayers. However, concerns were raised by certain sectors, such as retail and leisure, which felt overlooked in terms of business rates relief compared to counterparts in England.
As Scotland prepares for crucial budget discussions, the SRC’s call for support underscores the importance of balancing economic interests with social welfare priorities in shaping the country’s financial roadmap for the upcoming year.