Scotland branded a "difficult" place to do business by firms

More than 30 businesses signed a letter to the Deputy First Minister urging for a freeze on rates

The 35 businesses say they are sending an "unequivocal message" to the Finance Minister
Author: Molly TulettPublished 6th Nov 2023

Business leaders are urging the Scottish Government to freeze business saying it will “help ease the burden” on them.

As next month’s Scottish Budget approaches, 35 businesses have united in sending an “unequivocal message” to deputy first minister Shona Robison.

It comes as the Scottish Chambers of Commerce (SCC) claimed firms “now share the view that Scotland has become a more difficult place to do business than at any point in recent memory”.

Amongst those who signed the letter were SCC chief executive Liz Cameron, chief executive of Scottish Financial Enterprise Sandy Begbie, and CBI Scotland director Tracy Black.

"More difficult place to do business than at any point in recent memory"

Ms Cameron said: “Businesses continue to face significant challenges in the face of high inflation, high interest rates, increasing economic uncertainty and persistent labour shortages".

The letter to Ms Robison, who is also the Finance Secretary, warns that “after three-and-a-half turbulent years of the pandemic and costs crunch", trading conditions for businesses "remain challenging".

The signatories said: "We therefore ask that Scottish ministers prioritise a freeze in the headline business rate poundage - which is already at a 24-year high - in the coming financial year.

"This would aid firms with the costs crunch, help them keep down prices for customers, and support business investment and competitiveness."

35 businesses have supported the call for a rates freeze

Leaders of groups including the Scottish Retail Consortium, the Scottish Grocers' Federation, the Scottish Tourism Alliance, the Scotch Whisky Association, the Federation of Independent Retailers Scotland, the Federation of Small Businesses Scotland, the Institute of Directors Scotland, the Scottish Property Federation, UKHospitality Scotland, the Scottish Beer and Pub Association, the Scottish Licensed Trade Association and Homes for Scotland have also put their names to the letter.

David Lonsdale, director of the Scottish Retail Consortium, said the signatories are a "formidable cross-section of representatives of Scottish industry and commerce".

He added: "We hope Ms Robison will take heed and act in her Budget next month to protect Scottish businesses and jobs."

"Protect Scottish businesses and jobs"

A Scottish Government spokesperson said: "Scotland already has the lowest poundage rate in the UK, after freezing it as part of the 2023-24 Budget.

"Any decisions for 2024-25 will be made as part of the Scottish Budget process.

"In the meantime, the Scottish Government will continue to do all it can to support businesses in response to the cost-of-living crisis, including pressing the UK Government for support with high energy bills.

"The New Deal for Business Group, which has wide representation from the business community, also continues to consider issues regarding non domestic rates."

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