Retailers fear Scotland ‘less viable’ for investment without rates discount

Retail representative groups are calling on the Finance Secretary to introduce a permanent business rate discount as they fear Scotland may become a "less viable" location to invest in.

Twelve groups and industry bodies - including the Scottish Retail Consortium - have jointly written to Shona Robison to demand a permanent business rates discount for all retail premises.

The call comes ahead of the Scottish Government’s Budget in January and follows the introduction of a permanent business rate discount for retailers in England set out in the UK Budget last month.

It states: "We collectively believe that your Budget on January 13 needs to introduce a permanent business rate discount for all retailers, one which is at least as competitive as is planned for stores in England.

"This would support retailers, the local job and career opportunities they provide, the vitality of our high streets and town and city centres, whilst delivering on our shared vision of making ‘Scotland the best place in the UK to grow a retail business’."

Chancellor Rachel Reeves announced in her Budget in November that retailers in England will receive a permanently discounted business rate from April.

The letter to Robison said stores across the border will receive roughly a 10% discount to their business rate. This has caused concern among retailers that if Scotland does not also introduce a business rate discount, the country will become a “less viable” location to invest in.

The letter states: "If the Scottish Government fails to act, retailers here in Scotland will miss out on a permanent business rate discount and existing and new stores and high streets here will – by comparison – become less viable locations to trade and invest in, with consequence for the state of our retail destinations.

"It is not in the interests of Scotland’s economy for shop owners to be incentivised to invest in Berwick-upon-Tweed over Balloch, Bathgate, or Brechin."

A Scottish Government spokesperson said: "Decisions on non-domestic rates for 2026/27 will be set out in the Scottish Budget in January.

"We will continue to work closely with businesses to drive economic growth and prosperity in our towns, cities and communities."