Shops occupying medium to large spaces in Scotland are set to face £162 million more in business rates over the next three years than the same size stores in England, according to the Scottish Retail Consortium (SRC).

Smaller stores which are liable for the Basic and Immediate Property rates will be able to benefit from the Scottish Government’s new Retail, Hospitality and Leisure sector’s rates relief (RHL). The SRC says the RHL relief is “very welcome” but the poundage rates will still be above those in England.

The amount that can be claimed by businesses in Scotland will also be capped, unlike in England.

The Scottish Retail Consortium director David Lonsdale said: “To their credit the Scottish Government has recognised that retailers’ pay a disproportionate amount in business rates and the new rates relief is a positive step forward.”

“However, the new RHL relief falls well short of what is required. The convoluted restrictions and cap on eligibility means it won’t benefit all stores and it will be less generous at every level compared to the relief on offer to retailers in England from 1 April.”

Additionally, the 2,296 shops in Scotland with a rateable valuable of £100,000 or above will not be eligible for RHL relief and will be liable for the Higher Property rate of 54.8p in the £ from April 1.

Stores in England will pay 43p in the £, meaning medium to large stores in Scotland will be paying out £54 million a year more.

The SRC believes more competitive business rates will help “rejuvenate” Scotland’s high streets.

Lonsdale added: “A far more ambitious approach is required from those political parties seeking to form the next Scottish Government, one that at the very least ensures a competitive level playing field with England and which delivers on the industry’s vision to make Scotland the best place in the UK to grow a retail business.”

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