Local shops across Scotland could face rising costs and potential job losses unless business rates are reduced — despite recent moves south of the border to cut retail taxes.
Retail rate discount introduced in England, but not in Scotland
In late 2025, retailers in England won a permanent business-rate discount for many high street shops, lowering their operating costs. In contrast, shops in Scotland remain subject to higher business rates.
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Industry voices say this discrepancy makes Scottish retail less competitive compared with England and Wales.
Retail jobs and high streets under threat
The retail sector is a major employer in Scotland. Higher business rates increase operating costs for shops — reducing profit margins and discouraging investment.
According to trade organisations representing shopworkers and retailers, this could lead to fewer new store openings, closures of existing outlets, and ultimately job losses — especially among younger or entry-level workers who often start their careers in retail.
Call for permanent rate relief to protect Scottish retail
Both the union Usdaw and the industry group Scottish Retail Consortium (SRC) are urging the Scottish Government to introduce a permanent business-rate discount for retailers.
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By GlobalDataTheir argument: without relief, Scotland risks weakening its high streets, losing retail jobs, and becoming a less attractive location for retail investment compared with elsewhere in the UK.
If policymakers want to safeguard jobs and keep Scottish towns alive with shops and customers, aligning Scotland’s business rates with those offered in England and Wales should be a serious consideration.
