Portfolio Question Time – in the Scottish Parliament at on 12 June 2024.
Murdo Fraser
Conservative
To ask the Scottish Government whether it will provide an update on what action it is taking to support the retail sector. (S6O-03553)
Tom Arthur
Scottish National Party
Our retail strategy sets out how we will work with businesses and trade unions to deliver a strong and prosperous retail sector, in line with the vision of the national strategy for economic transformation. The strategy sets out a clear vision for a retail sector in Scotland that is successful, resilient, sustainable and profitable. It seeks to build on retail strengths and to maximise opportunities for the sector to fulfil its potential and contribute to our economic transformation. Many retailers in Scotland also benefit from the small business bonus scheme—the most generous of its kind in the United Kingdom—which offers up to 100 per cent relief from non-domestic rates.
Murdo Fraser
Conservative
I thank the Minister for his response, but the latest retail sales figures suggest that the sector is struggling. Of course, the sector is also struggling due to the fact that the Government did not pass on the 75 per cent rates relief that is available elsewhere in the UK to retail, hospitality and leisure businesses.
In the budget at the end of last year, the Scottish Government raised the possibility of an additional penalty—a rates surtax—on larger grocery stores, which the sector is very strongly opposed to and would find very damaging. Does the Scottish Government intend to proceed with that?
Tom Arthur
Scottish National Party
In my previous role as the Minister for Community Wealth and Public Finance, along with the then Deputy First Minister and Cabinet Secretary for Finance, I was part of several meetings with retail. Since taking up my new post and assuming the lead responsibility for retail, I have met the co-chair of the retail industry leadership group. At all those meetings, the matter was discussed in depth. Although a formal decision has not yet been taken, we are considering the representations from industry very seriously, and I am acutely aware of the concerns that they have expressed.
Daniel Johnson
Labour
I remind members of my entry in the register of members’ interests and the fact that I am a member of the Union of Shop, Distributive and Allied Workers.
I was at the Scottish Grocers Federation election event yesterday afternoon. What is clear is that the biggest issue that the sector faces is retail crime. Indeed, the USDAW survey shows that the proportion of retail workers reporting that they have suffered violence has risen from 2 per cent in 2016 to 18 per cent. Although that is largely a justice issue, will the Minister outline how bodies such as the industry leadership group could be used to coalesce and provide an interface with other parts of the public sector, and will he outline in what other ways the economy brief and portfolio is looking at how it can tackle that issue, which the industry is facing?
Tom Arthur
Scottish National Party
I join Mr Johnson in recognising the serious concerns that have been raised, and I commend him for his long-standing interest in this area and his leadership in taking forward a member’s bill in the previous session of the Parliament.
The specific matter that Mr Johnson highlights was raised in my conversations with the co-chair of the industry leadership group, and I am happy to confirm to him that there has been engagement on it, including with the participation of the Minister for Victims and Community Safety, Siobhian Brown. There is cross-ministerial engagement on the issue, and I would be happy to provide more detail in writing to Mr Johnson, if he would be interested, on the engagement that is taking place and the work that has been taken forward.
Jackie Dunbar
Scottish National Party
The Scottish Retail Consortium is optimistic, citing Scottish Government policy, including the council tax freeze, as helping to “support demand”.
Given that the cost of living crisis continues to impact household budgets, will the Minister detail how the Scottish Government will continue to support retail and shoppers, putting money back in folks’ pockets?
Tom Arthur
Scottish National Party
As Scotland continues to face a cost of living crisis, the current high levels of inflation, although they are coming down, have disproportionately impacted the most vulnerable in society and have heaped more pressure on our public services. The Scottish Government recognises the pressure on household budgets, which is why, since 2022-23, we have continued to allocate around £3 billion a year to policies that help to tackle poverty and protect people as far as possible during the cost of living crisis.
We have consistently called on the United Kingdom Government to provide additional support to help people with the cost of living crisis, but the Chancellor of the exchequer has failed to deploy the full range of powers that are available to him to make the difference that would be required.
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Ministers make up the Government and almost all are members of the House of Lords or the House of Commons. There are three main types of Minister. Departmental Ministers are in charge of Government Departments. The Government is divided into different Departments which have responsibilities for different areas. For example the Treasury is in charge of Government spending. Departmental Ministers in the Cabinet are generally called 'Secretary of State' but some have special titles such as Chancellor of the Exchequer. Ministers of State and Junior Ministers assist the ministers in charge of the department. They normally have responsibility for a particular area within the department and are sometimes given a title that reflects this - for example Minister of Transport.
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