KATE Forbes has been urged to give all Scots over 16 a £50 voucher to spend in local shops as part of a plan to save Scotland’s struggling high streets.
The call is the latest demand to the Finance Secretary ahead of her Budget statement to Holyrood on her plans for the year ahead.
It comes from Scottish Labour who say town and city centres are “fighting for survival” with the pandemic compounding previous challenges.
The party insists the £50 voucher should only be used in a “bricks and mortar” shop and not online.
In a further ask Labour is calling for businesses in tourism, retail, hospitality to get a 50% discount on their rates from next spring.
Forbes introduced 100% rates relief for the tourism, retail, hospitality and aviation sectors for the whole of 2020/21, then extended it another year, to help firms survive a slump in trade. The benefit is due to end in April.
READ MORE: Scotland's block grant to remain 'flat in real terms' for years, economists warn
Forbes will be facing a significant challenge in her third budget as she assesses the financial and public service pressures resulting from the ongoing pandemic.
Health spending is expected to rise by 15% to £17 billion to fund the Scottish Government’s aspiration to increase NHS capacity by 10%, both to continue the fight against Covid and reduce the backlog of treatments for other conditions.
First Minister Nicola Sturgeon last month announced the Scottish Child Payment, a flagship policy to tackle poverty, would double to £20 a week for families on benefits. Experts have said the policy will cost more than £300 million.
The increase in spending may mean a squeeze on other areas unless taxes are raised to generate extra revenue. Councils and businesses have already said they must not be short-changed.
Scottish Labour’s finance and economy spokesperson Daniel Johnson described his party’s proposals as a “lifeline” for high streets, giving businesses the boost needed to get by.
“From big cities to small market towns, high streets across Scotland are fighting for survival,” said Johnson.
“These problems have been mounting for years now, with the pandemic pushing things to crisis point. We need to act before we are faced with a sea of ‘To Let’ signs up and down every high street.
“This Budget is a chance to correct the course and make sure our recovery saves businesses, protects jobs, and helps communities thrive.
“Scottish Labour’s bold proposals would be a lifeline for struggling shops, providing a much-needed boost for businesses and breathing fresh life into town and city centres.
“This would give us the time we need to make the long-term changes to level the playing field between bricks and mortar shops and their online competitors and ensure internet retailers pay their fair share.
“I urge the SNP to seize this opportunity to do something ambitious and deliver a real recovery for Scotland.”
Labour said its rates relief plan would cost £380m, while the high street policy voucher would cost £227m.
The party said that under this scheme, every adult aged 16 and over would be provided with a £50 prepaid card to spend in non-grocery businesses with physical premises within Scotland.
READ MORE: Support small businesses in new Budget amid mass closures, Government told
The scheme would be time-limited and could not be used for online purchases. Scottish Labour are also calling for a full review of non-domestic rates, and have previously proposed, as an interim measure, a levy on large warehouses used by major online retailers.
Meanwhile, the Scottish Children’s Services Coalition (SCSC), an alliance of leading providers of children’s services, has called for a Budget for mental health.
It urged more investment in mental health services against a backdrop of concerns over a mental health pandemic among young people amid the pandemic.
Official figures published yesterday show that at the end of September 2021, 1978 children and young people had been waiting over a year for treatment from specialist mental health services provided by the NHS.
This figure represents a doubling from September 2020 (959). They also represent 16.7 % of those waiting for specialist treatment.
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