Scottish Labour has welcomed business rates support set out in the UK Budget and called on the Scottish Government to match it for Scotland’s high streets.

Chancellor John Healey raised the threshold for small business rate relief for retail, hospitality, and leisure from £12,000 to £18,000, taking 70,000 more businesses out of business rates altogether. 

He also froze rates in real terms for other firms in those sectors for two years and extended the transitional relief supplement for a further two years. This builds on the earlier 20% rates cut for pubs, clubs and music venues from April next year.

Scottish Labour is calling for the SNP to pass this on to Scottish businesses with a two-year real-terms freeze for all retail, hospitality and leisure properties.

The budget also confirmed that adult gaming centres and vape shops will not qualify for business rates.

These changes mean the business rates relief scheme is significantly more generous in England than in Scotland as business rates are devolved to the Scottish Government as currently Scottish small businesses only receive 100% rates relief if their rateable value is less than £12,000.

Commenting, Scottish Labour Economy Spokesperson Daniel Johnson said “This UK Labour Budget backs England’s high streets by introducing a two-year business rates freeze – Scottish high streets deserve the same and John Swinney should follow suit in the Scottish Budget.

“Failure to follow the changes announced by the Chancellor will mean thousands of Scottish businesses will continue to pay rates and miss out on much needed relief.

“I welcome that the Chancellor has been clear that vape shops will not qualify for business rates relief, focusing support on local high street businesses such as retailers and grocery stores.

“John Swinney must follow suit in the upcoming Scottish Budget, set out his plan for business rates, and provide urgent support for Scotland’s high streets.”