The Scottish Retail Consortium yesterday upped the pressure on Government by insisting a “fundamental overhaul” of the business rates system is required to help revive the country’s struggling high streets.
The industry body welcomed the Northern Ireland Executive’s decision announced earlier this week not to renew its rates levy on larger retailers, which follows a similar commitment by the Scottish Government earlier this year.
The large retail levy had been hailed as an effort to retain the vitality of high streets by tackling the dominance of massive chains and supermarkets. It had been expected to generate £95 million in revenues for Holyrood over its three-year lifespan but will not be renewed after next year.
Nonetheless, the Scottish Government still expects to take some £2.9 billion in rates during the following financial year.
SRC director David Lonsdale said the news two devolved administrations had opted not to renew the levies was welcome, and also suggested “growing recognition” among legislators of the challenges faced by retail industry.
“The Scottish surcharge on larger retailers has undermined the devolved government’s claims to have the most competitive business rates regime in the UK,” he said.
“For the 240 retailers paying the £95m levy, they face a business rates bill 28% higher than for equivalent stores down south.
“The scrapping of the levies in Scotland and Northern Ireland is encouraging.
“However, it is but a sticking plaster to a rates system which requires a more fundamental overhaul.
“This will be crucial to increasing retailers’ confidence about investing in property, and to creating more jobs and reviving high streets.”