ONS data reveals that retail insolvencies in Scotland have increased at a faster rate than in England and Wales over the past two years, since the retail discount was abandoned in Scotland.
This trend suggests the Scottish government’s policy is actively damaging the high street.
The situation looks set to worsen as retailers in England prepare to receive 40% business rates relief from April 2025, while Scottish high street businesses have received no comparable support for the past two years, despite facing identical challenges.
Karen Forret, owner and managing director of Wilkies and member director for the British Independent Retailers Association (Bira), said: “Scottish retailers will be up against it come April with the new National Insurance and wage costs. We need the Scottish government’s support more than ever.”
She added: “For the last two years, Scottish high streets have had no support from the Scottish government, while our counterparts south of the border and in Wales have received vital assistance. Retail is not just an essential part of our communities but also critical for Scottish tourism.”
Bira is highlighting that the lack of comparable support puts Scottish retailers at a significant competitive disadvantage, particularly as they face increasing operational costs and economic challenges in 2025.
The organisation said it awaits the Scottish government’s budget announcement, hoping for measures that will help protect and sustain Scotland’s vital high street retail sector.
Andrew Goodacre, CEO of Bira said: “The future of our high streets hangs in the balance. We urge the Scottish government to recognise the crucial role independent retailers play in Scotland’s economy and communities by providing comparable support to that offered elsewhere in the UK.”
