Responding to today’s draft Scottish Budget, the Federation of Small Businesses (FSB) in Scotland has welcomed the extension of business rates relief to most of Scotland’s hospitality sector, but condemned the failure to include small retail and leisure businesses as “a bitter pill to swallow.”
FSB Scotland policy chair, Andrew McRae, said: “We welcome the extension of 40% rates relief to the majority of Scottish hospitality venues, who have borne the brunt of the pressures on small businesses in recent years. They continue to be squeezed hard by sharply rising costs and customers cautious about spending amidst ongoing economic challenges.
“We are also pleased the lifeline Small Business Bonus Scheme has been protected and will continue to offer vital support to tens of thousands of small businesses up and down the country. The freezing of the basic property rate, or ‘poundage’, is also welcome.
“However, the refusal to extend the same rates relief to our small retailers and leisure providers is a bitter pill to swallow.
“The pressures they are facing are exactly the same as those in England and Wales, where relief has continued to be available since July 2022 – the last time such relief was offered in Scotland.
“As a result, many retailers will face yet more difficult decisions in the months ahead as they look to protect the future of their businesses and employees.
“The extra investment in tackling retail crime through a new pilot initiative is a positive step. However, given the scale of the issue, and that the hoped-for cushion in the form of rates relief has failed to be extended yet again, it will offer little comfort to small Scottish retailers this December.”
ENDS
For further information contact:
Euan McGrory [email protected] 07734 509 227
Notes to editors
- The Federation of Small Businesses (FSB) is a non-profit, non-party-political organisation that offers its members a wide range of vital business services, including advice, financial expertise, support and a powerful voice heard in governments. Founded in 1974, FSB celebrates its 50th anniversary in 2024. More information is available at www.fsb.org.uk
- Micro and small businesses comprise almost all enterprises in Scotland (98%), employ over 900,000 people and turn over £93bn.