The Scottish Retail Consortium yesterday said major reform of business rates north of the border could “unleash” investment and growth.
The industry body’s director David Lonsdale spoke out after more than 100 leading businesses in England signed an open letter calling on the UK’s major political parties to commit to change ahead of next year’s UK general election.
The letter signed by major retailers including Morrisons, Asda, Tesco and Costa owner Whitbread said the current system is no longer fit for purpose.
Mr Lonsdale said the rationale behind the letter was just as valid in Scotland, and change was needed to drive growth.
“The business rates system in Scotland is one of the most expensive commercial property taxes in Europe, and firms in Scotland are set to fork out £2.9 billion in tax revenues in 2015/16,” he said.
“It acts as a disincentive to invest and, unlike any other national tax, it fails to flex with economic circumstances.
“It is, uniquely, a tax that only ever rises. One need only look at the swathes of empty premises on high streets across Scotland to see why this is problematic. Of course, behind the run-down facades there is a human element. Business investment means jobs, and a lack thereof means fewer jobs.”
He said failure to reform would mean Scotland losing out on investment and jobs.
“As I visit retailers across Scotland one message is consistently to the fore: their confidence to invest going forward is being held back by the prospect of shelling out even more for business rates.
“The £95 million rates levy on larger retailers operating in Scotland has made the situation worse, and appears designed to push retail investment towards other parts of the UK,” Mr Lonsdale said.
“An overhaul of business rates would be a very effective and tangible step policy makers could take now to unleash business investment and growth that could bring with it more Scottish jobs and a revival of our town centres,” he added.