United Kingdom?

One of the unintended side-effects of Scottish and Welsh devolution is that it gives the devolved administrations the ability to introduce new legislation which makes doing business more complicated and expensive. Aside from the obvious fact that for retailers dealing with three different jurisdictions is more complex than dealing with one, it has increased the likelihood of eccentric and populist but anti-business policies being introduced.

The Scottish government has led the way in this regard and its announcement last week of plans to levy a business rates supplement on the largest retail properties is bad news for retailers. Experts say the largest shops face a 35% surcharge under the policy, which is ostensibly to protect Scotland’s high streets.

Anyone with even a basic knowledge of the current economic situation would realise that penalising one of the few sectors of the economy which is growing and providing more jobs and tax revenue is a shortsighted move. Retailers already pay a disproportionate part of the business rates burden, and increasing this will do nothing to help strengthen Scotland’s high streets in the fight against their real long-term competitor, which is the internet.

While there are still plenty of battles to fight, retail is doing a better job of getting its voice heard by Westminster politicians. But the devolved administrations seem hell-bent on making a point of punishing big business, especially multiple retailers. This isn’t only deeply unfair, but bad for competitiveness and bad for jobs.