Scotland’s retail sector has suffered a significant blow, with over 10,000 jobs lost last year, according to Scottish Labour’s analysis of the Scottish Government’s Business in Scotland report.
The latest figures reveal that retail employment has hit its lowest levels since at least 2010, with 235,920 retail jobs recorded in 2023—a sharp decline from 246,270 in 2022 and 258,900 in 2010.
Criticism Over Lack of Support for Retail Sector
Scottish Labour has strongly criticised the SNP Government for failing to extend rates relief to the struggling retail sector.
During her budget announcement earlier this month, Finance Secretary Shona Robison introduced a 40% rates relief for the hospitality industry but excluded retail businesses.
Labour has urged the government to follow England’s example and extend tax cuts to retail, warning of dire consequences for Scotland’s high streets.
Daniel Johnson, Scottish Labour’s economy spokesperson, expressed concerns over the impact on local communities and the economy:
“As Scots head into town for Christmas shopping and Boxing Day sales, the decline of our high streets is impossible to ignore.
Retail jobs are vanishing at an alarming rate, and town centres are being hollowed out, yet the SNP lacks a clear strategy to reverse this trend.
“The SNP could have supported Scotland’s high streets by adopting Labour’s approach and extending rates relief to retail businesses. Instead, they chose not to act, delivering a devastating blow to the sector.
There’s still time to reverse this decision and implement a comprehensive plan to rejuvenate our high streets, including short-term relief and long-term strategies to level the playing field with online giants.”
Government Defends Budget Decisions
In response, a Scottish Government spokesperson highlighted their commitment to maintaining a competitive non-domestic rates regime. The spokesperson stated:
“The Scottish Budget 2025-26 includes a freeze on the Basic Property Rate, ensuring Scotland maintains the lowest such rate in the UK for the seventh consecutive year. Over 95% of non-domestic properties in Scotland benefit from the lowest property tax rate in the UK.”
Background on Scotland’s Retail Struggles
The decline in retail jobs is part of a broader trend affecting high streets across the UK, driven by changing consumer habits, the rise of e-commerce, and economic pressures.
In Scotland, the challenge has been compounded by a lack of targeted support for the sector, with many businesses struggling to recover from the pandemic and adapt to shifting market dynamics.
With high streets increasingly facing closures and footfall reductions, industry experts and policymakers are calling for urgent interventions to support local businesses, protect jobs, and ensure vibrant town centres remain a cornerstone of Scottish communities.
