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Barrhead Travel and SPAA criticise limited rates relief in Scottish Budget

The absence of rates relief for retailers in the Scottish Budget has been condemned by the country’s leading travel agency.

The Holyrood parliament in Edinburgh heard that business rates relief would only cover “hard-pressed” local pubs and restaurants.

Barrhead Travel president Jacqueline Dobson voiced disappointment at the lack of support for the high street.

She was responding after Scotland’s finance secretary Shona Robison published a new devolved tax strategy, insisting that she was providing tax support for low and medium-income earners. 

But Dobson said: “For the third year in a row, Scottish retail businesses will be denied access to the same business rates relief as our counterparts in England.

“Retailers in Scotland are facing the same pressures and challenges as in England – but we won’t have access to the 40% rates relief that stores in England can claim.

“It’s disappointing that the Scottish government have extended the relief to hospitality but excluded retail and leisure businesses.

“If the Scottish government wants to ensure that high street communities can thrive, they must commit to overhauling the rates system which is not fit for purpose.”

She previously pointed out that high streets were being propped up by “travel agencies and charity shops”, with one in seven outlets empty at the start of the year.

The Scottish Passenger Agents’ Association (SPAA) also expressed “deep disappointment” that travel agents are excluded from rates relief in the Scottish Budget, which is extended to the hospitality sector.

The association had called for the reform of business rates in Wednesday’s Budget to support high street travel agencies to ensure a “fair and equitable” taxation system across the UK.

A spokesperson said: “The SPAA believes this decision is unfair and short-sighted, as our members face continued, significant pressures, including rising costs and post-pandemic recovery challenges.

“As an organisation we at the SPAA have advocated for parity with England and Wales, where travel agents benefit from rates relief.

“Now we’re also asking for parity with hospitality businesses in our own high streets. The exclusion places Scottish travel agents at a competitive disadvantage, stifling growth and investment.

“High street travel agents are essential to Scotland’s economy, supporting both outbound and inbound travel.

“We have campaigned in the last few years on this issue and we urge the Scottish government to reconsider this decision and engage with us to address the disparity in support for Scotland’s travel industry.”

 

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