Ministers urged to put retailers at heart of economic policy

The SRC want town centres, like Fort William, to be put at the heart of government policy

A trade association has called for the next Scottish government to put town, city centres and retail destinations at the "heart of economic decision making".

The Scottish Retail Consortium (SRC) has published a manifesto ahead of the 2026 Holyrood election calling for high streets to be made a priority.

It includes proposals such as introducing a more competitive business rate than England and introducing a system to make refitting shops simpler.

Deputy First Minister Kate Forbes said the government was working closely with businesses to drive economic growth and prosperity.

The SRC report, Scotland's Future High Streets, shares the challenges that towns and city centres are facing across the country and policy solutions drafted by the retail industry.

It has also suggested investment in other areas it believes would boost the sector.

This includes combating retail crime through increased funding for Police Scotland and introducing an elected Scottish police and crime commissioner to replace the current Scottish Police Authority.

It also calls for infrastructure improvements to private and public transport to make town and city centres more accessible.

David Lonsdale, director of the SRC, said the current parliamentary session had presented the Scottish retail industry with "a series of almost overwhelming challenges" including Covid and the Ukraine war.

He added: "Retailers have had to adapt to this new economic norm.

"That means fewer stores operating from fewer locations with decisions made even more on the return on investment.

"There has been a complete shift with almost all retailers of scale now operating online."

SRC research found that in the year to July shopper footfall to retail destinations in Scotland fell by 0.9% on average.

Visits to shopping centres also declined by 0.9%.

The study also reported that government-imposed costs of operating retail stores in Scotland increased by nearly £200m this year, as a result of increases in business rates and employers' national insurance.

Mr Lonsdale said: "The next Scottish government needs to put town and city centres and retail destinations at the heart of economic decision making.

"That should include reducing the cost of business, making it easier to visit and to invest in the high street, and ensuring it's safe for shoppers and consumers."

'We need decisive action from the UK government'

The deputy first minister said Scotland had the UK's lowest tax rate for non domestic properties.

Forbes also said £733m of relief was provided to retailers through initiatives such as the Small Business Bonus Scheme.

Forbes added: "However, we are doing all of this without the full economic powers needed to fully address the issues facing Scotland's economy.

"We need decisive action from the UK government, including a reversal of its damaging decision to increase employers' national insurance contributions which is severely hampering business confidence, investment, growth and costing jobs."

Scottish Conservative business and economy spokesman Murdo Fraser said: "We need an urgent change of focus to make businesses and growth the centrepiece of government policy.

"Only that will provide the revenue essential to fund frontline public services and revitalise our town and city centres."