To ask the Scottish Government what measures it is taking to boost confidence in the retail sector. (S6O-03756)

The Scottish Government deeply values the vital role that retail businesses play in the growth of Scotland’s economy. We will continue to build on the foundations that we have already created jointly with business representatives, and we remain fully committed to the new deal for business.

In relation to sectoral support, we are maintaining the small business bonus scheme, which is the most generous scheme of its kind in the United Kingdom and offers up to 100 per cent relief from non-domestic rates. Our retail strategy sets out how we will work with businesses and trade unions to deliver a strong and prosperous retail sector.

Data from the Scottish Retail Consortium and KPMG shows that total sales in Scotland decreased by 0.5 per cent between August last year and August this year. Given that our high streets are already struggling thanks to the Scottish National Party’s failure to pass on rates relief last year, does the Minister accept that more needs to be done to help the sector to deliver the economic growth that Scotland needs?

It is always important to recognise that a wide range of factors can have an impact on the data that ultimately materialises at the end of a month. Annie Wells will be aware of some of the meteorological conditions that had an impact on high streets over the summer—if we can even call it summer.

I have had similar exchanges with Annie Wells previously in the chamber. The challenges that the retail sector faces are significant and structural, and they are not unique to Scotland. There has been a combination of factors over many years. For example, when my party came to power in 2007, online retail sales—this is from memory—accounted for about 2 per cent of retail sales. That figure peaked at more than 30 per cent during the pandemic, and it is still in the 20s. There was also significant growth in the number of out-of-town retail facilities in the 1980s and 1990s. A range of factors is having a direct impact on high streets today.

Important work is being done on this, but it will not be an overnight fix. Although the regulatory and fiscal environment is of significant importance, there is a broader range of factors to consider, and key to that will be regeneration of and investment in our town and city centres. Of particular importance is increasing the residential population of our town and city centres, which will be significant for the future of the high street and the retail sector.

Retail Economics and Tradebyte have reported that British brands and retailers have seen international sales to the European Union plummet by almost £6 billion since Brexit. Can the Minister provide any update on what assessment the Scottish Government has made of the continued cost of Brexit to business?

Business surveys show that, of all Scottish businesses trading with the EU, 48 per cent of exporters and 58 per cent of importers face increased costs because of Brexit. Brexit has been estimated to have left the UK economy at least £69 billion worse off compared with EU membership, and the Scottish Government continues to favour Scotland’s rejoining the European Union single market as an independent country.

That concludes portfolio questions on Deputy First Minister’s responsibilities, economy and Gaelic. There will be a short pause before we move on to the next portfolio to allow front-bench teams to change positions, should they wish.