Lobbyists demand ‘pro-business Scottish Budget’ as inflation continues to bite – Harpers Wine & Spirit Trade News

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By James Lawrence

Published:  02 December, 2024

Due to be unveiled in the Scottish Parliament on 4 December, lobbyists have been pushing for a decrease in business rates to “avoid tipping Scottish businesses over the edge”.

According to Stuart McCallum, head of consumer markets in Scotland at RSM UK, excessive regulation, allied to increases to employers’ National Insurance contributions, runs the risk of “making the cost of employment unsustainable for some”.

He said: “A permanent lowering of the rate would not only ease the burden on retailers and hospitality operators, but offer a competitive advantage against counterparts across the rest of the UK. Scotland’s retail and hospitality sectors depend on their workforce and being able to attract the right people. With income tax rates already less favourable than those south of the border, the Scottish government ought to avoid any further hikes, to risk losing more talent.

“They could even go a step further and increase income tax thresholds in line with inflation, particularly to relieve financial pressures on lower and middle income earners. With increased consumer confidence comes an increase in spending, which the industry would hugely welcome.”

Meanwhile, David Lonsdale, director of the Scottish Retail Consortium, implored the government to deliver “an unambiguously pro-business Scottish Budget,” boosting consumer confidence and helping to offset the Chancellor’s increase to employers’ National Insurance contributions”.

Marc Crothall MBE, chief executive of The Scottish Tourism Alliance, added: “Tourism and hospitality businesses are telling us loud and clear they need to see measures that will immediately ease the financial burden on them and that will directly support the sector to grow and be more competitive.

“The tourism and hospitality sector has felt overlooked in recent years as a key economic driver. We must see a Budget that protects, restores and invests to have long-term success.”