‘Sigh of relief’ as Swinney freezes business rates, industry body says
The 2023-24 Scottish budget was laid out on Thursday.
Your support helps us to tell the story
From reproductive rights to climate change to Big Tech, The Independent is on the ground when the story is developing. Whether it's investigating the financials of Elon Musk's pro-Trump PAC or producing our latest documentary, 'The A Word', which shines a light on the American women fighting for reproductive rights, we know how important it is to parse out the facts from the messaging.
At such a critical moment in US history, we need reporters on the ground. Your donation allows us to keep sending journalists to speak to both sides of the story.
The Independent is trusted by Americans across the entire political spectrum. And unlike many other quality news outlets, we choose not to lock Americans out of our reporting and analysis with paywalls. We believe quality journalism should be available to everyone, paid for by those who can afford it.
Your support makes all the difference.There will be a “sigh of relief” on the high street as the Deputy First Minister announced a freeze to business rates, an industry body has said.
Laying out the budget for next year, John Swinney said he had listened to the lobbying coming from business organisations for a freeze to non-domestic rates to support the industry.
The Scottish Retail Consortium welcomed the move but said that business rates will need “recast in the years ahead”.
I can confirm that we will protect businesses from the full impact of inflation by delivering a freeze to the basic property rate
Announcing the move, John Swinney said: “16 business organisations came together to ask me to take one particular step to support businesses through these tough times.
“Their number one ask was that I freeze non-domestic rates poundage at 2022-23 levels.
“On non-domestic rates, I can confirm that we will protect businesses from the full impact of inflation by delivering a freeze to the basic property rate.
“This will ensure Scotland has the lowest poundage in the United Kingdom for the fifth year in a row and is forecast to save business tax rate payers £308 million compared to an inflationary increase.”
David Lonsdale, director of the Scottish Retail Consortium, said: “Retailers will breathe a sigh of relief at the decision to freeze the business rate.
“Ministers have clearly listened and responded positively to the concerns and representations of the industry, which accounts for 22% of all rates.
“Freezing the business rate means retailers – Scotland’s biggest private-sector employer – avoid a £60 million tax hike at a time when they are grappling with spiralling costs and an uncertain outlook.
“This is good news for retailers, for hard-pressed retail destinations and for shoppers as it will ease upwards pressure on store prices.”
Mr Lonsdale added: “The freeze shouldn’t be the limit of the Government’s ambition on rates. The burden remains onerous with the business rate having escalated to a 23-year high.
“Business rates need recast for the years ahead, beginning with a timetable for returning the poundage to a permanently lower level and faster restoration of the level playing field with England on the higher property rate.”
The move was also welcomed by the Scottish Chambers of Commerce, with chief executive Dr Liz Cameron saying: “As a priority ask from the business community, we welcome the Scottish Government’s decision to freeze the poundage rate and align with the rest of the UK.
“This will provide relief to ratepayers by reducing the upfront cost burden of non-domestic rates.
“This was the right decision as is the incentive for businesses to invest in greener plant and machinery which supports net-zero and decarbonisation.”
She also said there needed to be “widespread reform to the system”, adding that it will not bring “much Christmas cheer”.
Meanwhile, the licensed trade hit out at the Scottish Government for its perceived lack of support for the sector.
Leon Thompson, executive director of UKHospitality Scotland, welcomed the shift on business rates, but said the industry needed Mr Swinney “to go further”.
Scottish Beer and Pub Association CEO Emma McClarkin said the lack of specific rates relief for pubs was “hugely disappointing”.