In a preliminary response to the UK Chancellor's Autumn Budget,
David Lonsdale, Director of the Scottish Retail
Consortium, said:
“Scotland's retailers will face a £190 million increase in their
tax bill following the Chancellor's announcement that employer
national insurance contributions are to rise. Combined with
increases in the statutory wage rates it's clear retail
businesses will see big rises in the cost of employment, whilst
there was little sign of any significant reform to non-domestic
rates. Such stark increases will increase the cost of operating a
retail business and are unlikely to be absorbed by businesses, at
a time when Scottish retail sales are flatlining, making it
likely those costs will be passed along to consumers.
“The update on the economy brought little sunshine. Economic
growth is only predicted to rise to two percent at best before
easing back, whilst it will be 2029 before inflation returns to
beneath the two percent target. That implies little rise in
household disposable incomes, further increasing the challenge
for retailers looking to grow their businesses.
“Retailers' will now turn their attention to the Scottish Budget,
with the devolved government due to receive substantial sums in
Barnett Consequentials. With little fiscal headroom of their own
retailers will hope to see action to blunt any rise in
non-domestic rates and an end to the mooted introduction of a
business rate surtax on grocers. After being thwacked by
additional employment costs in the Chancellor's Budget retailers
deserve to be spared any further tax rises by Scotland's Finance
Secretary in December.”
