Death of the retail park?
New bid to save high street could see out-of-town shopping centres blocked and ‘Amazon tax’ revived
PLANS for an ‘Amazon tax’ have been revived in a bid to save Scotland’s high streets.
And Holyrood’s planning powers could be used to block new retail parks as part of a strategy to tackle falling footfall.
Ministers want a ‘town-centre first’ approach that would see councils told they should be ‘limiting new out-of-town development’.
Three years after the Scottish Government caved in to business pressure and dropped a socalled ‘Amazon tax’ on online retailers, ministers have said they will reconsider the idea.
In response to a report looking at how to support and improve town centres for businesses, shoppers and communities, the Government revealed it will ‘explore the taxation of digital sales in Scotland’ so that online businesses ‘contribute to tax revenues alongside our bricksand-mortar businesses’.
It follows an announcement from Chancellor Rishi Sunak that the UK Government will consult on a tax on online sales so that high street shops, which pay business rates, are not disproportionately affected.
It is not clear whether the Scottish Government would be able to impose the levy without the UK introducing a similar policy as the powers for new taxes are reserved to Westminster. Nevertheless, the Scottish Government says tax relief could be considered for businesses that generate more energy from renewable sources.
Community wealth minister Tom Arthur said: ‘This response has been developed in partnership with local government and recognises how vital town centres are for Scotland’s economic, environmental and social wellbeing.
‘The actions in this report provide a framework to meet our ambitions and give communities the freedom and confidence to deliver locally. They will help improve our town centres following the pandemic and deliver net zero climate ambitions whilst promoting better planning and delivering enhanced digital capabilities for businesses and residents.’
He added: ‘We all have a role to play in ensuring our towns and town centres deliver the needs of the whole community and these actions will help us deliver that ambition by creating healthier, fairer, greener and more successful towns.’
A spokesman for Cosla, the council umbrella body, welcomed the proposals and said: ‘The framework it provides will help our towns to contribute to national targets such as net zero, but also opens opportunities for towns to thrive through digital connectivity, green spaces and support for retailers.
‘As long-time supporters of the town-centre first approach, we are delighted that this call to action puts the focus back on to Scotland’s towns and town centres and the communities they serve.’
However, Scottish Conservative finance spokesman Liz Smith said: ‘In true SNP style, this “action plan” is really nothing more than a collection of flimsy platitudes, and the only significant policy – a tax on online sales – is merely an “exploratory” suggestion.
‘What our struggling high streets need is concrete support to help them recover after years of declining footfall and the hardships of the pandemic. The Scottish Conservatives have repeatedly called for business rates relief for the full financial year, to prevent businesses hitting a devastating cliff-edge in July, and simple, effective schemes like removing parking charges in town centres to increase footfall.
‘Businesses will see right through this classic SNP spin and bluster.’