The Scottish Retail Consortium (SRC) has called for an unequivocal commitment by the UK government to refrain from introducing new levies on retailers, to implement a substantial decrease in business rates, and to allocate increased funds to address retail theft, in the upcoming autumn 2025 budget.
The move highlights the need for supportive measures in the face of difficult trading conditions and an uncertain economic outlook.
Go deeper with GlobalData
Discover B2B Marketing That Performs
Combine business intelligence and editorial excellence to reach engaged professionals across 36 leading media platforms.
SRC director David Lonsdale said: “Retailers make a significant economic and social contribution to Scotland but are straining to trade profitably against a backdrop of flatlining retail sales, flaccid levels of shopper footfall and faltering consumer confidence.
“Meanwhile, government-mandated costs on retailers are mounting, with the rises in non-domestic rates and employers’ national insurance contributions adding £200m to Scottish retailers’ outgoings this year.”
Retail is Scotland’s largest private sector employer, providing 228,000 direct jobs and many more within the supply chain. However, the industry is experiencing a slump in sales and stagnating shopper footfall.
The SRC’s 17-point proposal, titled “Aisles of Ambition: Delivering Growth for Scotland’s Retail Industry”, outlines strategies to bolster consumer spending, enable store investments, address retail crime and reduce government operating costs.
US Tariffs are shifting - will you react or anticipate?
Don’t let policy changes catch you off guard. Stay proactive with real-time data and expert analysis.
By GlobalDataLonsdale continued: “Compounding the costs crunch retailers face must be avoided. Last year’s Scottish Budget contained some positive announcements however we’re seeking bolder action this time to support consumers, helps retailers invest in retail destinations, further tackle retail crime and cut government running costs.”
In anticipation of the £60bn Budget for 2026-27 and the Spending Review, the SRC’s submission includes specific recommendations such as a commitment to no new taxes on retailers, a more competitive business rate than England, and scepticism towards further tax devolution that could impact consumer spending or raise retailer costs.
The SRC also advocates for a narrower income tax divergence between Scotland and the rest of the UK and enhanced funding for the Retail Crime Taskforce.
In August 2025, the SRC raised the alarm after newly published crime figures revealed a 17% increase in shop thefts across Scotland in 2024-25, reaching more than 47,000 reported incidents.
Lonsdale concluded: “The focus has to be on lifting private sector growth and making Scotland the best place in the UK to grow a retail business. We appreciate that politicians will have an eye on the coming election. However, it’s imperative that the devolved administration and MSPs from across the Scottish Parliament work collegiately to pass a pro-growth budget. After all, an expanding economy is a prerequisite for raising living standards, more well paid jobs, and for generating the revenues to allow policymakers to enact social and environmental change.”
