The Scottish Retail Consortium has appealed to Chancellor George Osborne to use his last pre-election budget to boost the country's fragile retail sector, by boosting consumer spending and relieving costs.
Scotland's shop sector, which provides over 250,000 jobs, and invests £1440 in training each worker, continues to suffer from unsettling market shifts, brought about by changing shopping habits, plus other structural, economic and regulatory factors.
Although retail contributes 5.5 per cent of Scottish GVA at £26bn, over a fifth of non-food retail sales are now carried out online and the total value of Scottish retail sales fell over the last year, exacerbating the "hollowing out" of many urban economies.
David Lonsdale, chief executive of the SRC said: "Responding to these changes will require substantial outlays on ICT infrastructure, more highly skilled staff and revamped shops and warehouses, against a backdrop in which shop prices are at record lows, margins are thin and costs including business rates keep rising".
"The Chancellor can assist in his Budget by putting money into people's pockets, keeping down the cost of doing business and facilitating retail investment".
He also added that reducing the deficit in the public finances would alleviate the need for further tax rises, and urged that income tax reductions should be targeted towards low earners.
"Staff-related outgoings account for the largest business cost facing most retailers. We want to see greater predictability over the future direction for the minimum wage with economic conditions and affordability firmly taken into account, and the independence of the Low Pay Commission respected."
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