Retail and other industry groups are urging members of the Scottish parliament (MSPs) to introduce a permanent cut in business rates for retail and other properties. 

The call comes in the run-up to the Scottish government’s Budget on 13 January 2026 and follows confirmation that retail, hospitality and leisure businesses in England will benefit from a permanent reduction in business rates from April 2026.  

The measure represents a 5p in the pound cut, equivalent to 10%. 

Retail organisations, joined by hospitality, tourism and leisure groups, argue that the UK government’s decision has altered the competitive landscape for businesses across the country. 

Together, the sectors employ around 457,000 people in Scotland and are seen as central to the health of high streets and town and city centres. 

In a joint open letter to MSPs, the signatories state that failing to introduce a similar arrangement in Scotland could undermine the viability of retail locations.  

They say this could influence investment decisions, place pressure on jobs and contribute to rising vacancy levels on high streets. 

The letter also points to the need for Scotland to remain an attractive destination for commercial investment as retailers continue to respond to economic change.  

“Scotland must not become a materially more expensive place to operate as it would likely shift investment to other parts of the UK,” the letter reads.  

The signatories note that there are differing positions among the organisations on wider business rates reform.  

However, they are united in seeking a permanent business rates discount for retail premises that is at least as competitive as the approach planned for England. 

The letter is signed by David Lonsdale of the Scottish Retail Consortium and representatives from UKHospitality Scotland, the Scottish Tourism Alliance, the UK Cinema Association and ukactive.