Retailers in town centres across Scotland are struggling as shoppers opt for online shopping and retail parks.
Notices reading ‘This branch has closed’ appear on high streets across the UK.(Image: Getty Images)
Today, Scotland’s high streets are caught in a “death spiral,” with the number of retail businesses with at least one employee falling to a 15-year low according to the Daily Record.
More than 900 retailers and an estimated 24,600 jobs have been lost across Scotland over the last 10 years as town centres struggle against the growth of retail parks and online shopping, with the national vacancy rate for empty shops now standing at 11.4 per cent.
The fall in retail businesses causes alarm as retail is Scotland’s largest private sector employer with 235,000 Scots directly employed by the industry with thousands more in the supply chain.
The SNP Government is now facing increased pressure from business owners and trade unions to introduce a permanent business rate discount for all retailers.
Scottish Labour has promised to make the future of local high streets a key issue in the election ahead of the next Holyrood poll in May. The party wants to reform business rates and deliver fair funding for local government.
Daniel Johnson, Scottish Labour economy spokesman, said: “When doing the Christmas shopping or hitting the Boxing Day sales, it is impossible to ignore the sorry state of our high streets at this time of year.
“Scotland’s retailers are essential employers, creating jobs and supporting thriving communities. It’s a scandal that one in ten retail employers have disappeared on the SNP’s watch, but this tired government has no answers.
“The SNP has consigned Scotland’s town and city centres to a death spiral through unfair business rates and cuts to local services – but this is not as good as it gets.
“A Scottish Labour government will revive our high streets by investing in local communitie and reforming business rates to level the playing field between local shops and online giants.”
Last month Rachel Reeves announced a a permanently discounted business rate in England from April as part of the UK budget.
This means that stores in England will receive a 10 per cent discount to their business rate, but this is not in place for Scotland. Wales is also set to reduce the business rate that retailers’ pay.
Usdaw, which represents shop and distribution workers, has previously called on the SNP Government to use its Budget statement next month to offer rates relief to struggling high streets.
Tony Doonan, Usdaw regional secretary, said: “A thriving retail industry is good for the availability of local jobs and career opportunities, better training and pay progression, as well as for investment on our high streets and in our town and city centres.
“We’re calling on MSPs to implement a permanent business rate discount for all shops from next April otherwise there is a real risk that Scotland will miss out on the development of new stores and existing stores will become less attractive and viable options to invest in.
“That’s not good for the condition of our high streets, shopping centres and retail parks, nor for staffing levels and job opportunities here in Scotland.”
A Scottish Government spokesman said: “Business investment in Scotland is at a 20-year high – while it’s been falling in the rest of the UK.
“The Scottish Small Business Bonus Scheme is the most generous of its kind in the UK and means that more than 100,000 small properties in Scotland pay no rates at all.
“Decisions on income tax and non-domestic rates for 2026/27 will be set out in the Scottish Budget in January.”