STRUGGLING garden centres across Scotland risk being forced to close if ministers push ahead with plans to implement an extra tax on out-of-town businesses, it has been warned.
The Horticultural Trades Association, which promotes the interests of the UK garden industry, said business rates are “already burdensome", with firms recently seeing huge hikes.
It argued any “extra burden” could tip shops over the edge, meaning “the rural economy would suffer through lack of employment”.
Scottish ministers are considering an extra tax on online and out-of-town retailers following a recommendation in last year’s review of business rates, chaired by former RBS boss Ken Barclay.
Three pilot schemes allowing councils to implement a business rate surcharge could be brought in from spring 2020. The proceeds would go towards supporting town centres.
But the HTA said such a move could lead to price hikes for customers and suppliers, as well as penalising successful businesses and introducing a “them and us” attitude.
It said: “The Scottish government has stated that it wants to deliver a competitive and clear business rates scheme, but this introduces unpredictability and a more complex scheme that is opaque instead of being clear.”
It added: “Some garden centre retailers operate across the UK, so an increase in rates in Scotland would discourage investment in the future and make Scotland an unattractive place to launch new stores and invest in rural areas.
“Finally, increasing prices and decreasing availability of garden plants and products is counterproductive to promoting gardening as a healthy hobby for mental and physical health and wellbeing.”
The trade association said garden centres bring money into rural communities and are a destination for tourists and locals.
If an extra levy must be introduced, it called for safeguards and clarity on how the system would work.
In its submission to the Scottish Government’s Barclay implementation consultation, the HTA said: “Local councils may have their own agendas for revenue raising and make the burden onerous.
“The pilot schemes could end up being a postcode lottery for local businesses.”
It comes after the Scottish Retail Consortium branded the proposals “ill-considered and poorly timed”.
Larger firms in Scotland already pay more tax than their English counterparts due to the controversial large business rates supplement.
The Scottish Government previously insisted the proceeds from an extra tax on out-of-town retailers would be “used to support rates relief for businesses in town centres”.
It said it is consulting on “a range of appropriate safeguards”.
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