BA joins calls for Scottish business rates discount to aid Covid-hit retail

The Booksellers Association has signed an open letter from the Scottish Retail Consortium calling for a business rates discount for the coming financial year.

In all, 13 leading business representative groups and industry bodies have jointly written to the Scottish Finance Secretary Kate Forbes. The collective call comes ahead of the unveiling of the Scottish government’s budget on 9th December, which is expected to set the business rate and associated reliefs for the 2022/23 financial year.

The letter stresses progress has been made in Scotland on business rates reform, including on more regular revaluations and a commitment to keep the headline poundage below the rest of the UK.

However it states the sector is still struggling post-Covid. It says: “We are almost two-thirds of the way through the current financial year and store sales and shopper footfall in Scotland have yet to return to pre-pandemic levels, whilst shop vacancies have climbed to a six-year high. As Holyrood’s Finance & Public Administration Committee noted this month, many retailers have incurred significant debt through the crisis including Covid loans and tax deferrals.

“As the guardrails of taxpayer support are gradually withdrawn, retailers are ready to contribute their fair share. However, further assistance will be required in the transition. A return to full 100% business rates from April, which were at an onerous 21-year high before the pandemic, will be insurmountable for many shops.”

It goes on to call for a discount for all retail premises in the coming financial year to “provide a bridge” to the next revaluation in 2023. “This would support the survival of shops, the jobs they provide directly and in the supply chain, and the vitality of our high streets and retail destinations,” it states.

In his own budget last month, chancellor Rishi Sunak said business rates would be cut by 50% for retail, hospitality and leisure companies for the next year, up to £110,000. He also ditched next year's planned annual increase in rates and committed to more frequent revaluations, every three years, starting in 2023.