Business Taxation

Portfolio Question Time – in the Scottish Parliament at 3:03 pm on 30 October 2024.

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Photo of Bob Doris Bob Doris Scottish National Party 3:03, 30 October 2024

To ask the Scottish Government what discussions the economy secretary has had with ministerial colleagues regarding how its approach to business taxation supports the economy. (S6O-03851)

Photo of Tom Arthur Tom Arthur Scottish National Party

Ministers meet regularly to ensure that the economy is prioritised in work that is under way across Government. Our view is informed through extensive stakeholder engagement with the business community, think tanks, civic society, tax professionals and local government.

Photo of Bob Doris Bob Doris Scottish National Party

I have previously supported that, and I have suggested that the large retailer supplement is an aspect of business taxation that could be revisited, as it is reported to have raised £95 million from 2012 to 2015. Given that the Fraser of Allander Institute has previously suggested that retailers make an excess profit of £30 million per year due to minimum pricing, what assessment has the Scottish Government made of the economic impact and budgetary benefit of a future large retailer levy for large retailers that sell alcohol?

Photo of Tom Arthur Tom Arthur Scottish National Party

The Scottish budget for 2024-25 signalled an intention to explore the reintroduction of a non-domestic rates public health supplement for large retailers in advance of the next budget.

The Scottish Government has engaged with relevant stakeholders, including public health organisations and retailers, to explore the potential effects that the reintroduction of a public health supplement might have. We are committed to consulting the new deal for business group on the policy. That will ensure that considered and informed decisions can be made in the context of the Scottish budget for 2025-26.

Photo of Murdo Fraser Murdo Fraser Conservative

The United Kingdom Chancellor of the Exchequer has announced a hike in employers’ national insurance contributions to 15 per cent, which will hammer businesses across Scotland. However, the same budget has delivered substantial Barnett consequentials to Scottish finances.

As we know, in the past two years, the 75 per cent rates relief has not been passed on to retail, hospitality and leisure businesses in Scotland. Given that the Scottish budget might well be enhanced, is it not time to consider supporting our businesses with lower taxes, rather than doing what Bob Doris suggests and hitting them with even further increases?

Photo of Tom Arthur Tom Arthur Scottish National Party

As Murdo Fraser will be aware, there are non-domestic rates reliefs totalling £685 million this year. He will appreciate that the budget has just been delivered. Decisions about next year’s taxation regime will be set out by the finance secretary at the budget, and we—rather like the bond market and everyone else—are currently digesting the UK Government budget.