By Bill Heaney
The SNP Government have been accused of a “shameful betrayal” of Scotland’s retail sector, as their failure to pass on rates relief available to businesses south of the border was blamed for the loss of 29,000 jobs in a year.
The figures, from the Office for National Statistics, cover the 12 months to September 2023 and amount to an 8% fall in the total number of retail jobs.
Scottish Conservative MSP Murdo Fraser says the figures are the “predictable result” of the SNP denying businesses the 75% rates relief provided by the UK Government.
And the shadow business secretary warns of a further haemorrhaging of jobs in the wake of finance secretary Shona Robison emulating predecessor John Swinney by failing to pass on to businesses the £320 million of funding received as a result of the UK chancellor’s autumn statement.
Scottish Conservative shadow secretary for business, economic growth and tourism Murdo Fraser MSP, pictured right, said: “These appalling job losses are the predictable result of the SNP’s failure to pass on the funding that the UK Government provided for business rates relief.
“It’s a shameful betrayal of retail workers. They have been hung out to dry by the decision of nationalist ministers to put Scottish firms, and Scottish branches of UK and international chains, at a competitive disadvantage.
“The SNP said that they wanted to listen to business, yet they have ignored repeated calls from the retail sector for a level playing field with the rest of the UK.
“The closures and job losses are a direct result of that. Sadly, we can expect more of the same thanks to Shona Robison repeating the folly of John Swinney in her disastrous tax-and-axe budget.
“It’s clear that the SNP government is still not serious about supporting Scotland’s high streets, even in the face of a shocking eight-per-cent fall in jobs.”
The Scottish retail sector lost nearly 30,000 jobs in the year to September 2023. According to the most recent UK Labour Force Survey, Scotland’s retail sector lost 29,000 jobs or 8% of its total workforce in the twelve months to September 2023. (Fraser of Allander, 16 February 2024, link; ONS, 13 February 2024, link).
The UK government has extended the 75% business rates relief scheme to 2025. The Chancellor, Jeremy Hunt, confirmed in the Autumn Statement that the 75% relief in non-domestic rates for Retail, Hospitality and Leisure (RHL) businesses, with a cap of £110,000, has been extended until 2025. (UK Government, 15 December 2023, link).
The 2023-24 Scottish budget took a “hardline” approach to businesses according to the Fraser of Allander Institute. In its analysis of the budget, the Fraser of Allander Institute noted that they were surprised at the approach to business relief that Kate Forbes took but that in 2022, “John Swinney has seemingly taken an even more hardline approach and there are no additional reliefs applied to hospitality and retail as is the case south of the border.” (Fraser of Allander Institute, 15 December 2022, link; Scottish Government Budget: 2023-24, 15 December 2022, link).
The Scottish government has decided not to pass on the business rates relief funding from the Autumn Statement. The SNP have determined not to pass on the £320 million worth of business rates relief Scottish businesses were entitled to from the Autumn Statement. (FAI, 12 December 2023, link).