Welsh retailers get 40% rates cut denied to Scots – Daily Business

Welsh retailers and leisure firms will benefit from the business rates relief in England which has been denied to businesses in Scotland.

The government in Cardiff has confirmed that the non-domestic rates multiplier will be capped at 1% for 2025-2026 and retail, leisure and hospitality businesses will continue to receive 40% relief towards their bills.

This replicates the decision for English retail, leisure and hospitality businesses taken by Chancellor Rachel Reeves in her Budget on 30 October.

In Scotland, Finance Secretary Shona Robison announced in her 4 December budget that the relief would only be given to the hospitality sector. Scottish ministers said the budget could not extend to covering retail and leisure.

David Lonsdale, director of the Scottish Retail Consortium, said: “Scotland’s retailers have welcomed the freeze to the basic property rate for the coming year.

“However, as retailers digest the full implications of the Scottish Budget we’re detecting disquiet amongst smaller shopkeepers over the omission of any rates relief comparable to that which counterparts in Wales and England are entitled to for the coming year.

“This is especially so as Barnett Consequentials were forthcoming from UK Government to help fund this. 

“Matching the rates relief offered elsewhere would help hard-pressed retail destinations and stores here in Scotland at a time when they are grappling with spiralling costs and an uncertain outlook.”

There has been some concern, particularly among Scottish retailers, over growing disparity between England and Scotland that may affect competitiveness.

Scotland’s Deputy First Minister and Economy Secretary Kate Forbes told Daily Business this week that  the structure of the economies north and south of the border “are fundamentally different” and a tailored response is required from each government.