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The Booksellers Association (BA) has joined five other trade bodies in urging the Scottish Government’s finance secretary Shona Robison MSP to allow Scottish retailers rates relief in the upcoming Scottish Budget.
It is hoped that the rate relief for 2025-26, for the Budget on Wednesday (4th December), would offset the financial pressure caused by Chancellor Rachel Reeves’ decision to increase employer’s national insurance contributions from April.
The letter to Robison, written by the Scottish Retail Consortium and co-signed by the BA alongside the Scottish Grocers Federation and the Horticultural Trades Association, argues that the UK government’s recent decision on retail, hospitality and leisure relief in England means funds will be available to offer Scottish retailers lifeline support under the Barnett Consequentials.
The BA said the “sector braces itself for a colossal increase in employer’s national insurance contributions which is set to cost retailers in Scotland £190m each year at a time where retail sales have flatlined for the past five months, the growth in shopper footfall is meagre at best, yet statutory costs are spiralling”.
Meryl Halls, managing director of the BA, said: "Hardworking booksellers across the UK and Ireland share many of the same day to day challenges but also face a diverse set of obstacles unique to their location and government.
"It is of the upmost importance that we tailor support and collaborate with partners on the ground to protect all bookshops. Therefore, we fully support the call for retailer rates relief in the upcoming Scottish budget as outlined by the Scottish Retail Consortium and urge Holyrood to give our members the support they deserve and need."
Marie Moser, owner of The Edinburgh Bookshop said: "At a time when all small retailers face rising costs and an NI increase of approx. £700 per employee – it is especially frustrating that Scottish retailers are not receiving the rates relief that is being offered to their English counterparts. In addition the rates system does not recognise the Social support bookshops offer their communities, where they run free adult and children’s events, book clubs and support to schools."
The BA also spoke to the Mail On Sunday on Sunday (1st December) about the deep concern regarding the timeline of the government’s policy in the Budget to “level the playing field between the high street and online giants” through adjusting the levy paid on the rateable value of a commercial property to ensure premises with higher rateable values, such as the warehouses used by online shopping giants, pay more.
Meryl Halls, m.d. of the BA, said that, having lobbied on this issue for a number of years, the BA remained appreciative of the government’s vision of fairer business rates between the high street and online retailers, but urged immediate reconsideration of the gap between this lifeline reform and the imminent cut to retail rates discounts that would leave 40% of BA members exposed to harmful average annual costs increases of £9,431.
Fleur Sinclair, president of the BA and owner of Sevenoaks Bookshops, raised the issue in her keynote at The Bookseller’ s FutureBook conference last Monday (25th November).
Sinclair said: “Retail is still the most taxed sector in Britain, and margins are already tiny. Increases in wage bills and rates bills will impact booksellers’ ability to invest in the future of their businesses and it’s highly likely to compromise viability for some. All of which makes it urgently important that we advocate tirelessly for the huge cultural, social and commercial value of bookshops.”