Sarwar: Scottish Government must follow Chancellor and extend rates relief

Chancellor Rachel Reeves extended the 40% rates relief for retail, hospitality and leisure firms in last month’s Budget.

Mr Sarwar has urged the Scottish Government to follow suit and extend the tax break north of the border.

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The Fraser of Allander Institute has estimated it will cost £220 million to replicate this policy in Scotland.

Scottish Labour urged ministers in Edinburgh to “support Scotland’s high streets”.

Mr Sarwar said: “For too long businesses in Scotland have been forced to pay the price for the SNP’s financial and economic failure.

“Now that the UK Labour Government has ended the era of Tory austerity and delivered a record block grant for Scotland, the SNP has no excuses.

“Labour is protecting retail, hospitality and leisure businesses, which are so important to our economy and our communities.

“The SNP must match this level of ambition and pledge not to short-change Scottish businesses in a desperate bid to fill its budget black hole for another year.”

The Scottish Labour leader said he wanted to see “wholesale reform” of non-domestic rates in Scotland.

That would include proposals to increase the rates applied to large distribution warehouses to ensure a level playing field between high street retailers and online giants.

He went on: “The business rates system in Scotland is not fit for purpose as it stands – we need a new direction.

“The SNP must support Scotland’s high streets by passing on rates relief this year and set out a long-term plan to reform rates so they better support local economies.

“Scotland’s economy has been held back for too long by this out-of-touch and incompetent SNP government – but Labour will back businesses and boost growth.”

Finance Secretary Shona Robison said: “The 2024-25 Scottish Budget delivers a competitive non-domestic rates regime including the lowest poundage in the UK for the sixth year in a row, and a package of reliefs worth an estimated £685 million.

“Our small business bonus scheme remains the most generous of its kind in the UK.

“Decisions on non-domestic rates for next year will be considered in the context of the Scottish Budget 2025-26.”