Businesses in Scotland have high hopes for the upcoming Scottish budget, with rates relief at the top of their Christmas wish list. The Federation of Small Businesses (FSB) and the Scottish Hospitality Group (SHG) are both advocating for significant reductions in business rates to support sectors like retail, hospitality, and leisure.
The FSB is calling for a 40% rates relief for these sectors, similar to what has been extended in England. This relief would help businesses cope with rising costs and economic uncertainties, enabling them to protect jobs and ensure their sustainability. The SHG, on the other hand, specifically wants the business rates poundage to be reduced to 35p for all licensed hospitality premises without a cap.
The retail sector in Scotland is already feeling the pressure from increased employer national insurance contributions and the differential rate of income tax. These challenges are making it difficult for businesses to grow, hire new employees, and compete effectively. The Scottish Property Federation (SPF) is also raising concerns about the impact of rent controls on the housing sector, highlighting the need for more investment in new homes.
Looking ahead, the business community is seeking a comprehensive plan for economic growth that includes support for private sector businesses. Organizations like the Chartered Institute of Personnel and Development (CIPD) emphasize the importance of boosting business productivity, investing in skills, and fostering innovation across all sectors. As the Scottish Government prepares to unveil its budget, businesses are hopeful for measures that will stimulate growth and create a more conducive environment for investment and job creation.
