Industry bosses have branded Scottish Government plans to raise business rates for larger retail sites, including supermarkets and out-of-town retail parks, “madness”.
In his budget statement yesterday, Finance Secretary John Swinney said the move would create extra resources and help town centres throughout Scotland.
He also said he was maintaining the small-business bonus scheme to help smaller companies through the “difficulties many face in the present climate”.
Mr Swinney added that the continuation of the scheme would help tens of thousands of small businesses.
According to the government, the scheme has meant reduced or no business rates for an estimated half of all Scottish businesses.
However, many firms have complained of big increases in their rates and the loss of a transitional relief scheme, and yesterday’s move drew strong criticism from business leaders.
Scottish Chambers of Commerce chief executive Liz Cameron said: “There is much to welcome about this draft budget from an economic perspective.
“Less welcome is the news that large retailers are to face further pain through further increases in business rates.
“As if the abolition of transitional relief this year was not enough, this is a hammer blow to a sector that has been creating jobs in Scotland throughout the recession.”
Industry body the Scottish Retail Consortium said: “Piling unjustified extra costs on to them will undermine their ability to maintain and create jobs at a time when the private sector is being expected to make up for public-sector job losses.”
Consortium director Fiona Moriarty added: “Supermarkets and other large retailers play a vital role in the Scottish economy, providing jobs, services, value and choice as well as investing in training and regeneration.
“John Swinney is jeopardising future development, growth and jobs in the Scottish retail sector. Politicians of all parties must oppose this madness.”
CBI Scotland assistant director David Lonsdale said: “Supermarkets have been one of the few bright spots in the economy over recent years, and levying extra rates will hit their investment plans at a time when they have already been clobbered by the refusal to reintroduce transitional relief.”
The Scottish Council for Development and Industry also highlighted concerns, saying the increase could leave Scotland at a competitive disadvantage to the rest of the UK in terms of investment and also risk economic recovery and jobs.
Angela Mitchell, a partner at professional service firm Deloitte in Scotland, said the increase for larger retailers would put downward pressure on retail margins that they would “find difficult to bear”.
The Federation of Small Businesses welcomed the move to redress the balance between town centres, supermarkets and out-of-town retail parks.
A Scottish Government spokesman was unable to give any more details about the rates change other than to say that legislation would soon be laid before parliament setting out the details.