The Office of National Statistics Consumer Price Index (CPI) figure revealed inflation in September stood at 1.7%. The September figure is used by the UK Government to calculate the non-domestic rates multiplier for the following year.

The Scottish Government committed last year that increases in the poundage rate will be capped at CPI, although as with last year’s Budget the rise could be less than CPI.

However, if it is in line with CPI, retailers will pay approximately £12 million on top of their existing rates liabilities from next April.

Scottish businesses also pay a higher Large Business Supplement in Scotland which cost retailers nearly £14 million last year.

The impact of these changes can be seen in the new SRC 2019 Facts and Figures report into the state of the retail industry released today, which highlights the significant economic and social contribution made by the industry, and demonstrates the seismic transformation underway in shopping habits.

That includes analysis showing the number of shops fell by 4% between 2011 and 2016, and retail turnover fell by 8% in the same period. The report can be read here.

Ewan MacDonald-Russell, SRC head of policy, said: “This report confirms the trend of retailers operating with fewer workers from fewer shops, but with that effect being very different depending on which part of Scotland they are trading from. We know the ongoing costs of operating from property and employing workers are rising, and that’s putting enormous pressure on the industry, regrettably forcing some to make very difficult decisions.

“The expected £12 million increase in the retail business rates bill will further exacerbate the pressure, especially at a time where consumers are only spending on essentials. That’s why the industry sees this years’ Scottish Budget as an opportunity for further action.