New Deal for Business Group and Retail Industry Leadership Group meetings: FOI release

Information requested

1) All meetings the Scottish Retail Consortium have held with Scottish Ministers since 4 December 2024. Please provide the dates and attendees of these meetings as well as any minutes or notes that were taken from these meetings.

2) Whether the Scottish Government had advanced sight of David Lonsdale’s article in the Herald on 6 January 2025 and if so whether any changes, edits or amendments were suggested by the Scottish Government officials, ministers or advisers who had advanced sight of this article.

3) Whether the Scottish Government had advanced sight of David Lonsdale’s comments regarding the Scottish Budget on 6 January 2025 and if so whether any changes, edits or amendments were suggested by the Scottish Government officials, ministers or advisers who had advanced sight of these comments.

Response

1) There have been no meetings held solely between Scottish Ministers and the Scottish Retail Consortium (SRC) within the date range you provided. However, the SRC had representation at meetings that may fall within the scope of your request. For your reference we have attached the minute from a meeting with the New Deal for Business Group, which took place on 4 December 2024, as as the meeting note from the Retail Industry Leadership Group meeting, held on 5 December 2024, in the Annex.

While our aim is to provide you information wherever we can, on this occasion we are unable to provide you with all of the information you have requested as a statutory exemption under FOISA applies:

Section 38(1)(b) – Personal Data - This exemption applies to some of the information requested because it is personal data of a third party, i.e. names and contact details, and disclosing it would contravene the data protection principles in Article 5(1) of the General Data Protection Regulation and in section 34(1) of the Data Protection Act 2018. This exemption is not subject to the ‘public interest test’, so we are not required to consider if the public interest in disclosing the information outweighs the public interest in applying the exemption.

2) The Scottish Government received advanced sight of David Lonsdale’s article on 3 January 2025 as a courtesy, prior to it being published by the Herald on 6 January 2025. No changes, edits or amendments were made.

3) The Scottish Government received advanced sight of David Lonsdale’s comments regarding the Scottish Budget on 3 January 2025 as a courtesy, prior to them being published by the Herald on 6 January 2025. No  changes, edits or amendments were made.

ANNEX

New Deal for Business Group – Pre-budget discussion - Readout
4 December 2024 (13:40 – 14:00) Online (Teams) meeting

Members joining the call:
Dr Poonam Malik, NDBG Co-Chair
Katie Miller, CBI
Colin Borland and Stacey Dingwall, FSB
Catherine McWilliam, Institute of Directors
Nathalie Agnew, Muckle Media
Barry White, NSET Delivery Board Co-chair
Karen Meechan, ScotlandIS
David Lonsdale, Scottish Retail Consortium
Charandeep Singh, Scottish Chambers of Commerce
Iain Baxter, Scotland Food and Drink
Elspeth Hendry, Business in the Community Scotland
Marc Crothall, Scottish Tourism Alliance
Sandy Begbie, Scottish Financial Enterprise
James Fowlie, COSLA
Sara Thiam, Prosper

Scottish Government:
Kate Forbes MSP, Deputy First Minister and Cabinet Secretary for Economy and Gaelic

Scottish Government Support:
Frances Pacitti, Director DBBR
[REDACTED], Unit Head, New Deal for Business
[REDACTED] secretariat

Apologies:
Mairi Spowage, Fraser of Allander
Nora Senior, Co-Chair of ILG Chairs Roundtable

1. Welcome and opening remarks.

The Deputy First Minister (DFM) welcomed and thanked all for their time, written representations and valuable engagement to support developing the budget. The confidential nature of the discussion wasstres sed by DFM before going on to confirm that she had endeavored to deliver as many of the collective asks from the business organisations as possible. She acknowledged that some asks had not been achievable.

DFM confirmed that the budget centers on delivering the First Minister’s priories to eradicate child poverty, grow the economy, support Scotland’s public services, and tackle the climate crisis. The budget aims to provide the building block for Scotland’s future, where everyone benefits from change. Stressing again the need to respect confidentiality ahead of the statement, she highlighted that it is an economy focused budget with a substantial package of capital investment across rural and urban areas, targeting most sectors including renewable energy, housing, tourism, and culture.

DFM assured members that the business voice has been heard throughout the budget process and stressed that her aims in budget discussions were; to ensure it is an intensely local budget; no surprises for business and; deliver on many of the collective business asks.

2. Questions and comments 

All members welcomed the openness of DFM and particularly her endeavors to ensure that there are no surprises for the business community in the announcement. Members sought detail of specific support for SMEs, investment in skills, apprenticeships, universities and colleges, as well as export support.

3. Reflections from DFM

Whilst respecting the confidential nature of the budget detail, DFM confirmed that the budget includes strong measures to support innovation, skills and international connectivity. Officials undertook to distribute an economy factsheet to some members following the Cabinet Secretary for Finance and Local Government budget statement to parliament and confirmed that members reaction to the statement will be consolidated and issued to ministers.

4. Closing 

In closing the discussion DFM reflected that there will be the opportunity to have a detailed discussion on the budget announcement at the meeting of the Group on 12 December. She thanked members fortheir insightful contributions and reassured then that the business voice has been listened to throughout the budget process.

Meeting with Retail Industry Leadership Group members - Note of post-budget catch up
Directorate: Business and Better Regulation
Part of: https://www.gov.scot/economy/
Date of meeting: 05 December 2024
Location: Online via MS Teams

ILG members attending

• Polly Jones, Head of Corporate Affairs for Scotland, Asda and Industry ILG Co-Chair
• David Lonsdale, Director, Scottish Retail Consortium (SRC)
• Tony McElroy, Head of Communications and Devolved Government Relations, Tesco
• Lucy Brown, Central Operations Director, John Lewis Partnership
• Debbie Harding, Chief corporate Office (Dobbies) Chair of SRC
• Mo Razzaq, President, National Federation of Independent Retailers
• Meryl Halls, Managing Director, The Booksellers Association

Guests

• Luke McGarty, Head of Policy & Public Affairs, Scottish Grocer’s Federation
• Damien Drumm, Partner and Senior Manager, John Lewis
• Jayne Swanson, Head of Public Affairs, Scottish Wholesale Association

Apologies

• Pete Cheema, Chief Executive, Scottish Grocers Federation

Scottish Government

• Tom Arthur, Minister for Employment and Investment
• [REDACTED], Private Office
• [REDACTED], Head of Tourism, Hospitality and Retail Unit
• [REDACTED], Head of Non-Domestic Rates Policy
• [REDACTED], Non-Domestic Rates Policy Manager
• [REDACTED], Retail Team Leader

Secretariat

• [REDACTED], Senior Policy Officer, Scottish Government
• [REDACTED], Retail Policy Officer, Scottish Government
• [REDACTED], Retail Policy Officer, Scottish Government

Items
Welcome

• The Minister thanked members on the call for attending.
• Minister highlighted what he feels are the key things re: Retail from budget.
• £3m to target retail crime (Police Scotland to work with ILG on how best to use it), Non-domestic basic property rate frozen, and Public Health Supplement not being taken forward.
• Minister stressed that this is still a draft budget, then asked for initial feedback.

Member feedback on budget

• Polly Jones thanked the Minister for championing the sector.
• PJ felt that not taking forward the PHS will be widely welcomed, progress on retail crime funding shows the value of having someone standing up for retail interests. Minister thanked members for relentless work in the sector and ensuring Ministers had all the information on issues. Reiterated that SG is seeking to engage and allow stakeholders to influence policy.
• David Lonsdale conveyed he is looking forward to discussion at ILG re: £3m funding, and thatoverall the budget is helpful and shows progress from 12 months ago.
• DL gave a thumbs up for no PHS and freeze on basic property rate. Less positive – inflation linked increases in higher property rates. Retail has a disproportionately large chunk of premises. Hearing of unhappiness about lack of rates relief for retailers – spotted it for hospitality, and south of the border.
• Luke McGarty welcomed the continuation of Small Business Bonus Scheme, having retail crime funding, and having opportunity to input via ILG.
• LM stated that initial funding is a good start but would like to see ongoing funding, cited that £62.9 million each year is lost to retail crime. Disappointed in consequentials for 40% RHL relief in England not being offered to retail.
• Debbie Harding raised the issue of income tax structure in terms of Scotland vs the rest of the UK, and that the top talent in her company is not based in Scotland. This could lead to an issue in the long term with keeping HQ in Scotland.
• Minister stated that the additional tax revenue generated allows SG to invest in public services and in skills and drivers of economic growth, but asked officials to pass along this feedback to tax colleagues.

Non-Domestic Rates

• Minister asked [REDACTED] from NDR Policy to give her thoughts on UK Government’s proposed changes to business rates in 2026-27.
• [REDACTED] spoke of differences in Scottish and English stats, and that the proposed changes in England (lower rates for retail, hospitality and leisure (RHL) with a rateable value (RV) up to£500, 000; funded by a higher rate for all properties with an RV over £500,000) are expected to be revenue-neutral; Scotland therefore not expected to receive any additional funding in respect of this change.
• [REDACTED] cited DFM’s comment made in another meeting with stakeholder that ‘Scotland has no ‘big buildings’ compared to England, and added that Scotland has a higher share of RHL properties than England meaning the same change in Scotland could not be self-funded.
• Minister asked if we have an idea of what an RHL building with an RV over £500k would look like. DL fed back that Scotland only has the odd department store, garden centre, etc. DL stated that retail and hospitality are paying too much and the UK proposal accepts that principle.
• Minister queried if there is a programme of work being undertaken by UK Gov, [REDACTED] does not believe there any indication of meaningful reform to business rates in England, citing rating agencies claiming the same.

Next meeting of the ILG

• Minister stated that members will come together to discuss how best to use the £3m at the next ILG meeting.
• PJ noted that the meeting may take place at an ASDA depot but will let members know in due course.
• Minister signed off meeting by stating he understands that there is will for more action, but hopes that members see their feedback is being taken seriously.

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