A SCOTTISH retailer has slammed the lack of support provided to the sector in this week’s Budget as a “punch in the face” for the sector.
Karen Forret, who heads the Wilkies independent clothing, homeware and gifts chain, said the Scottish Government had “failed again to support our high streets” by not providing 75% relief from business rates in the next financial year, as has been afforded to the retail, hospitality and leisure sectors in England and Wales.
Hospitality campaigners also reacted angrily and said more of the £230 million of Barnett consequentials which flowed from the UK Government Autumn Statement should have been earmarked for rates relief.
READ MORE: Scott Wright: What now for hospitality after 'betrayal'?
Ms Forret, who earlier this year saw the family-owned Wilkies chain fall into administration and formed new company that took on six of the original chain’s 11 stores, said: “Two years on and still no support for Scottish businesses! Why does the Scottish Government not want to help our high streets and everything they contribute to Scotland’s economy.
“At the Autumn Statement on 17 November 2022 the Chancellor announced the introduction of a new business rates relief scheme for retail, hospitality and leisure properties – we waited but this financial support was not passed onto businesses in Scotland despite money being given to the Scottish government through Barnett consequentials.
“In Westminster’s budget at the end of November 2023 this support was extended for English retailers.
“The 2023/24 Retail, Hospitality and Leisure Business Rates Relief scheme will provide eligible, occupied, retail, hospitality, and leisure properties with a 75% relief, up to a cash cap limit of £110,000 per business.
“Scottish businesses need the same support and as we all waited for the support to be replicated in the Scottish Governments budget on the 19th of December 2023, they have failed again to support our high streets, despite being given the money from Westminster.
“The Scottish Government are spending over 122 million [pounds] investing in towns and high streets needing regeneration as part of the levelling up funding, which is great. But there is no point if, the vast majority of units are lying vacant.
“As a business we had to make the very difficult decision this year closing five out of 11 of our stores, we had already closed three stores post pandemic. At the time we thought seriously whether it was worth saving the six that we have kept open, but we believe our high streets and the jobs we have taken forward were worth saving.
READ MORE: Industry pleas fall on deaf ears as Budget moves closer
“It is such a punch in the face for the Scottish businesses investing in our high streets not to have been given the support they deserve.”
The Scottish Budget for 2024/ 2025, which was announced on Tuesday, saw ministers retain the small business bonus scheme, which means 100,000 commercial properties will not have to pay business rates.
It introduced 100% relief from rates was introduced for hospitality businesses in the Scottish islands; and the basic property rate poundage was held at 49.8p.
There was also a pledge to work with assessors to examine the way business rates are calculated in the hospitality industry.
A new income tax band of of 45% was introduced for those earning between £75,000 and £125,140, and spending cuts in housing, transport and social justice were announced as ministers sought to protect investment in the NHS, amid reports of a £1.5 billion deficit in the public finances.
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