Scotland's shopkeepers have blasted Shona Robison's "guddle of a budget," describing it as a “recipe for self-inflicted economic harm".
In a seven-page submission to Holyrood's Finance Committee, the Scottish Retail Consortium (SRC) criticised the lack of support for industry and warned that the Finance Secretary's tax hikes will hurt the high street.
They say measures to mitigate rising costs for business were insufficient.
One of the biggest disappointments of the trade body was Ms Robison's unwillingness to extend the business rates freeze to premises liable for the Intermediate and Higher Property Rates.
While the poundage on the basic property rate would be frozen for small businesses with a value up to £51,000, the SRC estimates 22,120 commercial premises – including 4,550 retailers – face a 6.7% rise, the biggest yearly hike since 1999.
READ MORE: SNP condemned over plan for health-related 'tax on shoppers'
They also expressed alarm at the possible reintroduction of a public health supplement surtax which would see larger stores charged for selling alcohol and tobacco.
Although it was not mentioned in parliament by Ms Robison, the idea was included in last month’s Scottish budget documents.
David Lonsdale, Director of the Scottish Retail Consortium, said this would be a breach of the last SNP manifesto which promised "that the largest businesses pay the same combined poundage in Scotland as in England”.
He said: “The more this guddle of a Budget is scrutinised the more concerning its implications become.
"4,500 shops will face enormous increases in business rate bills as the poundage soars to the highest rate since devolution began.
"With retail sales last year flat in real terms, and labour and commodity costs increasing, customers will be the ones to lose out as retailers look to cut their cloth accordingly.
“Regrettably it appears the situation may be worse in the future.
"In the depths of the Government’s Budget is an oblique, unclear, and not consulted upon threat to introduce a new surtax on large grocery retailers.
"This would be a retrograde step and firmly at odds with the so-called ‘New Deal for Business’."
He added: “The combination of new taxes, increasing business rates, and cuts to skills funding makes it hard to discern a coherent plan to grow the Scottish Economy in this muddled Budget.
"Scotland’s economy isn’t in great shape and the Budget seems set to make things more challenging. Retailers will hope the New Year is an opportunity for Scottish Ministers to change tack, at the very least ditching the absurd and uncompetitive shopping surtax.”
READ MORE: Scots retail chief hits out at 'punch in the face'
Liz Smith, Scottish Conservative finance spokeswoman, said: “It’s no wonder the SRC are concerned by this disastrous Budget, which might have been designed to stymie growth and hammer retail businesses.
“Thanks to the SNP’s failure to pass on the funding support for business rates, quarter of a million Scottish workers and 4,500 shops are disadvantaged compared with the rest of the UK.
“Higher Scotland-only taxes, both for individuals and retailers, are further punitive measures that will hinder employment, investment and competitiveness.
“The SNP’s constant imposition of more costs and regulations, rather than addressing their own over-spending and mismanagement, makes a nonsense of their claims to be listening to business.”
A Scottish Government spokesperson said: “We are committed to ensuring that engagement with the New Deal for Business non-domestic rates sub-group continues to explore how the non-domestic rates system can best support business growth, investment and competitiveness, while acknowledging the important role income from non-domestic rates plays in funding public services.
“Representatives from the retail sector will also be consulted around the potential reintroduction of a Public Health Supplement.”
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