The Scottish Wholesale Association (SWA) believes the recent Scottish Budget requires more targeted action towards the food and drink sector to help it navigate ongoing pressures and invest in their future with confidence.
Colin Smith, chief executive of the SWA, outlined his thoughts on the key areas:
Support for Employees and Businesses
Commenting on the draft Scottish Budget, Smith said: “This Budget demonstrates an ambition to provide direction and stability, which is welcome, but for wholesalers, the reality on the ground remains tough. Rising costs linked to inflation, energy, and transportation – compounded by UK-wide changes to National Insurance contributions, the National Living Wage, and business property relief – continue to squeeze margins and challenge operations, particularly for family-run SMEs.
“We hope that measures within the Budget will help ease pressures on wholesale employees, who are the backbone of our sector. Ensuring our workforce feels supported is essential as businesses navigate these economic challenges.”
Read more: SWA chief gives evidence at Covid-19 Inquiry
Building Confidence to Invest
Smith acknowledged helpful measures, which will indirectly support wholesalers serving the hospitality industry, through the reinstatement of 40% non-domestic rates relief for hospitality businesses, from 2025/26.
He said: “The hospitality and leisure sectors are critical to Scotland’s economy but who have struggled to fully recover after Covid, and which our members work tirelessly to sustain. Wholesalers are at the core of the food and drink supply chain, ensuring those businesses remain supplied. This much-needed support for hospitality was vital in trying to secure their long-term viability and investment within the Scottish economy.”
Confirmation from Scottish Government that they are not planning to proceed with the reintroduction of the Public Health Supplement for large retailers was also welcome
Smith also highlighted the importance of providing a stable environment for business planning. “A sense of direction is encouraging, but businesses need certainty and tangible measures to invest confidently in the long term,” he said. “For wholesalers, and indeed many of our customers, this means targeted support that allows us to manage rising costs while contributing to Scotland’s economic recovery and sustainability targets. There was little sense of any optimism for business confidence from this budget.”
Investing in Skills for the Future
The SWA also stressed the importance of addressing the sector’s recruitment challenges, particularly in attracting young talent. “We welcome any Budget commitments to invest in education and skills development through colleges and training programmes,” Mr Smith said.
“These measures could support the wholesale industry’s efforts to encourage more young people to consider careers in our diverse sector, ensuring a strong pipeline of talent for the future.”
