Medium and larger shops in Scotland are set to pay £54 million more in business rates than their English counterparts in the next year, according to the Scottish Retail Consortium (SRC). Some 2,296 shops with a rateable value of £100,000 or above will be liable for the higher 54.8p in the pound rate from April, compared to 43p in the pound for similar-sized stores in England.
The SRC criticised the Scottish Government over the discrepancy, noting that the affected stores will not be eligible for the new Retail Hospitality and Leisure (RHL) rates relief. Instead, they face a poundage rate 27% above that in England. Smaller stores will benefit from the RHL relief, but even that will be less generous than the relief available in England.
David Lonsdale, director of the SRC, said: "Scotland's medium-sized and larger stores will effectively be stumping up a £54 million surcharge from next month when new business rates come into force, compared to their English counterparts." He warned that Scotland risks becoming a "materially more expensive place to operate shops," potentially leading to a shift in investment south of the border.
The figures were confirmed in response to a written parliamentary question from Mid Scotland & Fife MSP Murdo Fraser. Mr Fraser, the Scottish Conservatives' business spokesman, said: "The SNP's decision not to match the rates regime in other parts of the UK is imposing crippling costs on medium and larger-sized firms and leading to closures and job losses."
A Scottish Government spokesperson said the 2026-27 budget includes a package of reliefs worth over £870 million, with 96% of retail properties receiving some form of relief. However, the SRC argues that more ambitious action is needed to create a level playing field with England.
