Retail leaders have warned the Scottish Government that the country is “one bad Budget away from losing our high streets as we know them”.
The Scottish Retail Consortium has urged Finance Secretary Shona Robison to take decisive action when she unveils the Scottish Budget in January.
The trade body is calling for business rate reductions to prevent Scotland from falling behind England competitively.
Their appeal follows the Chancellor’s recent Budget announcement of a 10 per cent reduction for English retailers.
The consortium said that without matching the reduction, Scotland risks becoming a “materially less attractive investment option” for retail businesses.
The organisation’s director, David Lonsdale, has written in the Herald and contacted Ms Robison directly to express the urgency of the situation facing the sector.
Mr Lonsdale noted that the Scottish Government has acted swiftly on business rates policy previously.
He pointed to earlier decisions to introduce more frequent revaluations and to drop proposed surcharges on grocery retailers.
However, he stressed that the current circumstances demand renewed intervention.
He said: “Ministers have proved fleet of foot on rates before, for example delivering more regular revaluations and ditching the mooted surtax on grocery stores.
Retail leaders warn Scotland is “one bad Budget away” from losing its high streets
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However, the warning is stark we’re one bad Budget away from losing our high streets as we know them”.
The Chancellor’s announcement last week has intensified pressure on Scottish ministers.
The 10 per cent cut for retailers in England has created a substantial tax gap that the consortium argues could divert investment away from Scotland.
The consortium said the disparity threatens to undermine efforts to maintain Scotland’s appeal as a destination for retail investment.
They warned that continuing the status quo could weaken attempts to strengthen town centres and support local economies.
In his letter to the Finance Secretary, Mr Lonsdale emphasised the wider economic impact of successful retail businesses.
He argued that improving business rate competitiveness would support the shared aim of making “Scotland the best place in the UK to grow a retail business”
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“When a shop thrives, so does the cafe next door, the restaurant down the street, and the town and city centre around it”.
He argued that improving business rate competitiveness would support the shared aim of making “Scotland the best place in the UK to grow a retail business”.
Mr Lonsdale urged the minister to act to protect the viability of Scottish high streets.
“Given this, we implore you to back the economic viability of Scotland’s high streets in your Budget by introducing a permanent business rate discount for retailers from April which is at least as competitive as England’s discount.”
The consortium wants a permanent discount rather than temporary relief.
They argue this is necessary to safeguard the long-term viability of Scotland’s retail sector and prevent investment shifting across the border.
The Scottish Government has acknowledged the concerns raised by the consortium.
Officials said announcements on non-domestic rates for the 2026–27 financial year will be set out when the Budget is presented in January.
A spokesman said: “We will continue to work closely with businesses to drive economic growth and prosperity in our towns, cities and communities”.
They highlighted existing support, including a business relief package worth about £730million.
The Government said Scotland continues to have the lowest basic property rate in the UK, a position held for seven consecutive years.
These provisions were in place before the Chancellor’s announcement of enhanced discounts for English retailers.
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Officials said these measures demonstrate ongoing support for businesses across the country.
However, these provisions were in place before the Chancellor’s announcement of enhanced discounts for English retailers.
The Scottish Budget in January will determine whether ministers choose to respond to the competitive gap identified by the consortium.
Retailers across Scotland will be watching closely to see whether the Government matches the reductions offered south of the border.