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The National (Scotland)
The National (Scotland)
National
Gregor Young

SNP and Labour clash over taxes as Scotland loses 10,000 retail jobs

SCOTLAND lost more than 10,000 retail jobs in 2024, according to government figures, meaning the number of people employed in the sector is at its lowest level since at least 2010.

The data is based on the Scottish Government’s Business in Scotland report.

It found there were 235,920 retail jobs recorded this year – down from 246,270 last year and 258,900 in 2010.

Scottish Labour called for the SNP Government to urgently act to support the country’s struggling high streets – suggesting they should extend business rates relief to the retail industry.

During her budget earlier this month, Finance Secretary Shona Robison announced a 40% rates relief for the hospitality sector.

Labour have called on her to match England and extend that tax cut to the retail sector, which would in effect mitigate Labour's own tax rises on business.

The SNP Government pointed to this, saying that the UK Government's increase to employers’ National Insurance contributions (NICs) would damage economic growth.

Professor Richard Murphy, on his website taxresearch.org.uk, said that Labour increasing NICs while also trying to promote growth was an “absurd approach to the economy”.

Daniel Johnson, Labour’s economy spokesperson at Holyrood, said: “As Scots head into town for Christmas shopping and Boxing Day sales this winter, the decline of our high streets is impossible to ignore.

“Retail jobs are disappearing at an alarming rate and town and city centres are being hollowed out, but the SNP has no plan to reverse this decline.”

Johnson added: “The SNP could have supported Scotland’s struggling high streets by following Labour’s lead and extending rates relief for retail businesses but it failed.

“This decision is a hammer blow to the industry, but it is not too late to reverse it.

“We need a real plan to support retail and breathe fresh life into Scotland’s high streets – including short-term rates relief and a long-term plan to level the playing field between local businesses and online giants.”

A Scottish Government spokesperson said: “The Scottish Budget 2025-26 delivers a competitive, non-domestic rates regime including a freeze to the Basic Property Rate delivering the lowest such rate in the UK for the seventh year in a row and maintaining the lowest property tax rate in the UK for over 95% of non-domestic properties in Scotland.

“The Budget also provides a package of reliefs worth an estimated £731 million, including the Small Business Bonus Scheme which is the most generous of its kind in the UK.

“We estimate that around half of the properties in the retail, hospitality and leisure sectors will continue to be eligible for 100% Small Business Bonus Scheme relief in 2025-26.

“Concerns have been raised with the UK Government around the rise in employer NICs, which risks hampering economic growth.”

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