Official Report 1049KB pdf
The final item of business is a members’ business debate on motion S6M-20035, in the name of Rachael Hamilton, on recognising small business Saturday 2025. The debate will be concluded without any question being put.
I invite members who wish to speak in the debate to press their request-to-speak buttons now or as soon as possible. I also alert members to the fact that there is a lot of interest in participating in the debate, and there are events going on in Parliament this evening that will already be running late, so I give due warning that I intend to hold members strictly to their time limits.
With that, I ask Rachael Hamilton to lead the way in opening the debate. You have up to seven minutes, Ms Hamilton.
Motion debated,
That the Parliament marks Small Business Saturday UK on 6 December 2025, an annual grassroots, not-for-profit campaign that celebrates and encourages support for small businesses across the UK; acknowledges that the campaign aims to highlight small business success while encouraging consumers to shop locally; recognises the vital role that small businesses play in communities across Scotland, including in the Scottish Borders, by driving growth, creating jobs and sustaining vibrant town centres; understands that micro and small businesses represent 98% of all enterprises in Scotland, employ more than 900,000 people and turnover £93 billion annually, according to the Federation of Small Businesses; considers that small businesses, particularly in rural communities, face increasing pressures from rising costs and economic uncertainty; notes the view that, although the Small Business Saturday occurs only once a year, support for and recognition of small businesses must continue throughout the year, and celebrates the vital contribution of small and rural businesses to Scotland’s economy.
17:41
I begin by declaring an interest as a business owner. That declaration of interests also applies to the interventions that I made earlier on Fergus Ewing in relation to rates revaluation.
Today, I pay tribute to all those enterprises and entrepreneurs across Scotland who work hard all year round. Those are the people who take risks, invest their savings and work long hours, and who keep going even when the economic environment is stacked against them. Their efforts provide the tax revenue that we need to fund public services; their success supports our national health service, schools and local councils and the services on which communities depend; and their hard work provides the good-quality paid jobs that we all need.
On small business Saturday—and, indeed, all year round—we should celebrate, and encourage support for, small businesses, including those in my area of the Borders—Border Eco Systems in Jedburgh, Thomas Sherriff & Co machinery and Border Padel Company, which I recently visited, are all fantastic examples. They need our help at this critical time more than ever, as it is an incredibly challenging time to be a small business. Owners are facing relentless pressure from rising bills and from inflation and energy prices, and on-going economic uncertainty is at the forefront of their minds. Many feel that, just when they start to recover from one challenge, another is placed in their way.
Will the member take an intervention?
If it is quick, because we have to “Hark the Herald”.
I call Craig Hoy for a very brief intervention.
Rachael Hamilton will be aware that, in many small businesses, the owners are the last to be paid, and are the lowest paid. Does she agree that it is disgusting that Labour’s attack on jobs, with the increase in employer national insurance contributions, comes at the cost of the last of the wages of some of those people around the country who are working hard—
I call Rachael Hamilton.
—to deliver for our communities?
I completely agree with my colleague, Craig Hoy. Businesses have cited the hike of 3 per cent in employer national insurance contributions as incredibly challenging, and they are not investing in their workforces as they used to do.
Businesses are dealing with persistent workforce challenges, including skills shortages and the difficulty of recruiting and retaining staff in key sectors such as hospitality, care and tourism. Footfall on the high street has not fully recovered since the pandemic, placing further strain on retailers who are already competing with online giants.
On top of that, as Craig Hoy has said, the national insurance hike has been particularly painful. For years, Scottish businesses have also had to contend with the Scottish National Party’s failure to pass on business rates reliefs that companies elsewhere in the United Kingdom have benefited from. That has left many firms in Scotland at a competitive disadvantage.
Today, I visited an Edinburgh hospitality venue, where I and my colleagues heard about crippling tax rises as a result of the current business rates revaluation. Alongside business groups such as UK Hospitality, the Association of Scotland’s Self-Caterers and the Scottish Hospitality Group, my party is urging the SNP Government to pause the proposed changes to non-domestic rates; we heard the same plea from Fergus Ewing today, too. There has to be a cross-party approach, but the Government urgently needs to review the methodology.
If the rates rises go ahead and businesses see their bills rise dramatically, it could ruin so many small enterprises—and that is not me talking, but people who have written to me with their case studies. Business owners have spoken to me about their anxiety, uncertainty and genuine fear for their futures.
Will the member give way?
I will give way to the member.
I call Fergus Ewing. Please be brief.
Does Rachael Hamilton agree that the Scottish Government does have the power to put the proposed changes on hold and that, if the Government denies it, that is not true?
I completely agree with Fergus Ewing. Scottish ministers do have the power, they make the rules and it is in their gift to pause the revaluation and change the methodology. Hotels, self-catering businesses and retail hospitality operators are absolutely terrified of the revaluation’s impact on them. The Government must pause it, and I ask Richard Lochhead to address that in his closing speech.
All of those issues form an economic environment in Scotland that is far from helpful. Small businesses feel as though they are an afterthought. Sometimes, they believe that the Government treats them like the enemy. Too many small businesses feel that their concerns are acknowledged only after decisions have already been made, instead of those concerns being meaningfully considered from the outset. Policies are often designed with large organisations in mind, leaving smaller firms to absorb the same costs and comply with the same rules without having the resources to do so.
Small businesses do not think that Holyrood helps them. They do not think that the Parliament understands business or gets the challenges that they face. They feel that entrepreneurial risk taking is not rewarded. Every year, they face bigger bills and the burden of more rules and regulations, which stifles innovation.
The knock-on consequences are that our economy does not grow as quickly as it should, and, because economic growth is critical to increasing tax revenue, that means that there is less money to fix and improve public services. It cannot go on like that. More growth means more money to target spending effectively and efficiently. A rising economy is essential to produce the higher tax revenues that our NHS, our schools and all our public services need.
I believe that the Government’s attitude to business must change. Given that it is the festive season, perhaps we can hope for a Christmas miracle—a miracle in which the SNP stops acting like Scrooge to Scotland’s small businesses and instead begins to celebrate, champion and encourage their efforts. That is exactly what needs to happen.
Practically every year, we hear the SNP promise to reset the relationship with the business community, but, like a new year’s resolution, the promise is never kept. In 2026, there must be a major reset in Scotland’s economic approach so that Government encourages aspiration instead of just taxing ambition, and Scotland is once again open for business. That is what the Scottish Conservatives want to see, and, in 2026, that commitment must be kept.
The Government also needs to make a serious effort to cut red tape. My party has proposed a reduction of red tape bill that would give businesses the opportunity to apply for regulations to be repealed or amended. That bill should be adopted by the Government and introduced to Parliament, because cutting red tape would help attract more investment, give Scotland’s economy the chance to thrive, give entrepreneurs a hand and spur innovation.
However, the biggest things that the Government could do to help small businesses would be to reduce their bills to make the cost of doing business more affordable; commit to bringing down business rates; overhaul the system so that it is fairer; and stop viewing tax cuts as morally wrong. After all, businesses earn that money.
We move to the open debate. Members have a strict four minutes.
17:48
I am very pleased to be able to speak in this debate marking small business Saturday and to help recognise the extraordinary contribution that small and micro businesses make to our economy, our communities and our national life.
Small business Saturday is, at its heart, a simple idea. It is about encouraging people to look first at the businesses on their high streets and doorsteps and in their own communities, and to recognise the value that they bring to those communities.
The motion alludes, rightly, to the fact that small businesses across Scotland are the backbone of our economy. In my constituency—and I am sure that this will be the case for every member who speaks in the debate—that reality is evident every day. The impact of those businesses, from the independent retailers and cafes in the town centres in my constituency to the many local innovative manufacturers on the various industrial estates dotted across it, is keenly felt.
I have been very keen to support small business Saturday for many years, and this year is no different. As I do every year, I visited one Cumbernauld-based business and one in Kilsyth. This year, I was pleased to visit RM Blinds, a family-run business that has been providing blinds across the west of Scotland for more than 20 years, and which operates its factory from Kilsyth, with a showroom attached.
I was also happy to visit NutriKing Meal Prep at the business’s kitchen in Cumbernauld. Started by Chris Jones, who has a background in fitness and nutrition, NutriKing provides nutritionally assessed, pre-prepared meals directly to customers in Cumbernauld and Kilsyth and the surrounding area on a weekly basis. The business is hoping to expand in 2026, and it will be looking to partner with gyms and various other businesses in the locality. It is a reminder that small businesses can support one another, too.
In previous years, I have visited many great businesses that serve my area. Last year, I visited World of Wings Birds of Prey, Scotland’s largest birds-of-prey centre, and McLachlan Opticians, which has two branches in my constituency. In 2023, I met the team at Serpent Kings Barbershop, in Cumbernauld village, which launched that very same year. Its success since then has been underlined by the fact that, just this week, it announced that its business would be moving to bigger premises, which are, thankfully for its dedicated customer base, still located in Cumbernauld village.
In 2022, I visited the Scarecrow bar and grill in Kilsyth, which won the best gastropub award at the town’s 2019 and 2021 food awards. That visit followed my visit to Banton to see the equally excellent community-owned and run Swan inn, an acquisition by the community that was assisted by funding from both the Scottish Government and the national lottery.
All are superb examples of small businesses in Cumbernauld and Kilsyth, and small business Saturday provides a focal point and an opportunity to celebrate and encourage such businesses. However, our commitment should be year round, through policy, partnership and practical support. Of course, the commitment that we show must also be backed by another P-word—patronage. We should all value and use the many small businesses that we are lucky to have in our local communities, and we should do so—as the motion sets out—not just on small business Saturday, but all year round.
17:51
I refer members to my entry in the register of members’ interests. Before I begin, I thank my colleague and friend Rachael Hamilton for bringing this important debate to the chamber.
Business has been in my DNA from a young age. When I was growing up in Glasgow, my parents started with a small grocery business in Argyle Street. I remember my mum not only running a small business but bringing up me and my siblings in the shop. It was a community hub where people could come together to share their problems.
My parents laid the foundations for me not only to run the family business but to understand the issues that businesses face and help them with my more than 30 years of experience. That has included trying to cut red tape in my years as a trading standards officer and, later on, working on inward investment, helping businesses through the 2008 financial crisis and onwards.
Today, as an MSP, I stand in the chamber to be the voice for businesses. Small businesses are the backbone of the Scottish economy. According to the Federation of Small Businesses in Scotland, micro and small businesses represent 98 per cent of all enterprises in Scotland, employing more than 900,000 people, with a turnover of £93 billion annually.
Small business Saturday celebrates our small businesses and encourages people to show their support by spending and shopping locally. Even though small business Saturday takes place on the first Saturday of December, it is a year-round movement that recognises businesses that make a difference in our communities, so it is important for us to support such businesses throughout the year.
My West Scotland region has many amazing small businesses that serve as the backbone of not only our local economies but our communities, including by employing local people. That is why, for the past three years, I have been hosting my own small business awards to recognise the work that they do. As I do not have a lot of time in the debate, I will mention only some of the great businesses in my area. Cafe Crème in Bearsden, Gavin’s Mill in Milngavie, No. 40 by Bruin in Bearsden, Mahony’s steak house in Bishopbriggs and Billington’s of Lenzie all offer unique services in the area. As they did during Covid, many of them, even today, still go out of their way to check on their local customers who are elderly and housebound.
We also have many young entrepreneurs stepping into the world of business, including Leah Mitchell of Rise & Reform Pilates in Lenzie, Eilidh Sirel of Florella Studio in Milngavie and many more who are creating businesses from scratch.
However, for such businesses to thrive, we need local councils and the UK and Scottish Governments to support enterprises. Businesses today are under immense pressure from many factors, including increased employer national insurance contributions from the United Kingdom Labour Government, a failure of the SNP Government to pass on rates relief, higher material costs due to inflation, parking charges, and an increase in break-ins, shoplifting and other forms of retail crime.
Let us be clear: business growth does not come from Governments. However, Governments need to provide the right environment for businesses to thrive. Unfortunately, as we can see, more regulations and taxes will only hinder growth and make operations more expensive. All of us in the Parliament have a duty to support business growth and keep taxes low.
17:55
Small business Saturday is an annual opportunity to celebrate the hard work of small businesses across the UK. Shopping locally is not just good for the economy; it is good for our communities and good for Glasgow. It is also not just for Christmas. We need to do it all year round.
There are so many small businesses in Glasgow to celebrate in this great city today. In the south side, there is the brilliant Bespoke Beauty, a family-run business that not only provides incredible therapies such as massage and skin care but acts as a sanctuary for many of its customers who enjoy the peace of self-care at the hands of brilliant, highly trained professionals.
Then there is Launch Coffee on Cresswell Street, where you can get the best homemade cookies out there and know that every purchase will help feed a child in the city of Glasgow; or Mootz, the brilliant, new Italian-inspired sandwich shop on Byres Road, whose menu is so delicious that you will find those sandwiches nowhere else.
Roots, Fruits and Flowers also has its own unique offer. Established in 1980, it has supplied organic wholefoods, fruit and veg and bespoke flowers for 35 years. If you grew up in Maryhill, the Jaconelli’s roll and sausage or full breakfast will have been a constant feature of your week.
Last December, Byres Road was ranked number 9 in the American Express top 10 list of UK high streets—the only high street in Scotland to make the list. The business improvement district there worked tirelessly to get that in order to bring customers to Byres Road and to showcase what the area has to offer. Its work to organise events such as the Vinicombe Street Christmas gala, which I enjoyed very much this year, and its collaborations with WestFest do much to keep the vacancy rates in the area low—they sit at 3 per cent against a national average of 14 per cent.
All those fantastic businesses represent the hard work of Glaswegians who are committed to entrepreneurism and their communities. They are often the product of years of passionate grafting and long hours, but that pays off in spades for our local economy and community. However, those businesses have endured years of difficulty, and they have felt let down by the Scottish Government. Many worry about parking provision, including charges, yet Glasgow City Council does not seem to listen. In the south side, many have raised concern about Glasgow City Council’s plans to introduce parking charges in Shawlands, Strathbungo and Battlefield, with businesses such as the Battlefield Rest speaking out about the detrimental impact it could have.
We should empower and not constrain our small businesses. That means increasing flexibility to unlock potential and giving certainty so that great ideas can flourish. Scottish Labour believes that we can and should do that in many different ways, such as through a new approach to planning. We would better incentivise investment, support bricks-and-mortar retail, tackle empty properties, make town centres attractive places to visit and support entrepreneurship.
We would also modernise business rates to reflect changes in local economies. The UK Labour Government is already doing a lot of that and is delivering comprehensive packages of support and reform for businesses across England and Wales. Those measures include permanent reductions in business rates with multipliers for retail, hospitality and leisure, funded by higher rates for online giants to level the playing field.
Since the 2024 general election, Labour has delivered £10.3 billion of additional funding for the Scottish Government. There is a real opportunity to deliver for small business owners across Scotland, if there were the political will to do so. Scottish Labour would also help businesses to partner and share the delivery of apprenticeships, which could be transformational for businesses in Glasgow, because, as in many areas, skills in key sectors, including in small businesses, are in short supply.
Small business Saturday happens once a year. However, as I said, support for and recognition of small businesses is not just for Christmas, but for every day. To all those who are listening and watching today, I say: pop out to your local street, find a local business and support it. You will get what you need, you will feel great and you will be celebrating the vital contribution of small businesses to this great country.
17:59
I congratulate my friend and colleague Rachael Hamilton on securing this important and topical debate. We have just been through small business Saturday and, as every speaker has said, we should support our small businesses throughout the year, not just on that one Saturday in December.
I will focus my remarks on one small business and one small business owner in Moray. The minister and I do not agree on an awful lot, but I hope that, when I have concluded my remarks, he will agree with what I am about to say. I want to use this opportunity, on the penultimate day of the parliamentary year, to say a big thank you from our Parliament to a Moray businesswoman who has done so much, not just for her business but for small businesses in Moray, the Highlands, Scotland and across the UK. She is Pearl Hamilton of Pearl’s Pet Care.
Pearl is retiring on Christmas eve after 43 years in business. Pearl started work in her teens on the croft where she was brought up and she has worked throughout her life. When she made her announcement, I reminded her that I had been a regular customer of hers, and I should declare an interest because I have my order in for Christmas eve for chicken food and cider vinegar for the chicken water. When she announced her retirement, I said that she had been in business longer than I had been alive. I meant that as a compliment to show her durability in business through good times and bad.
Pearl has been a stable part of Moray business for so long, starting off in Kinloss and then becoming a stronghold on Tolbooth Street. Last Friday, other traders on Tolbooth Street used their annual Christmas party to throw a surprise retirement party for Pearl. I am told that there would have been some pretty sore heads after it, as it was a very joyous affair.
Pearl just has a way about her. She is great at customer service, whether someone is a regular customer, as I am, or a first-time entrant to her shop. She will find what the customer needs and deliver it with great style and enthusiasm. That is why she has built up such a strong customer base over many years.
Throughout much of her 43 years in business, Pearl was supported by her family. Sadly, her husband Jeff died earlier this year. When I was a councillor on Moray Council, Jeff was an independent councillor for Kinloss and the wider Forres ward. They were a double act. Whenever I think of small business Saturday, I will think of Jeff coming out with Pearl and me to go round the other shops in Forres and Moray, getting our picture taken with our blue boards and supporting the FSB and small business Saturday. Pearl did a power of work with the FSB in Moray and across Scotland. Indeed, she also held national positions with the FSB.
Pearl and Jeff together built up their business to what it became. Jeff has sadly passed away, but Pearl is keen to continue with the pet care element of the business, so she will continue to look after pets in Moray and the Highland area.
When I saw that the motion was about small business Saturday, I thought that it was an opportunity for me to use my four minutes to give my personal thanks to Pearl for what she has provided to Forres, Moray and the wider community, not just through the business that she built up with her family and the support that she has given her customers but through the knowledge and expertise that she was ready and willing to pass on to other businesses in the area. Other businesses in Moray are doing well because of the help and support that they received from Pearl Hamilton.
I say to Pearl from the Scottish Parliament chamber that we are grateful for everything that she has done and we wish her a very long and happy retirement.
18:03
I, too, congratulate the member on securing the debate and wholly endorse the vital role of small businesses in sustaining the town centre and local economy. They are embedded in communities and support local events, football clubs and charities. They come in all shapes and sizes: shops, cafes, takeaways, pubs, manufacturers, a local cinema, a bingo hall—and that list is not exhaustive. Many survived the Covid years, which was tough going, and I thank them all for that. From Peebles to Penicuik and from Galashiels to Gorebridge, small businesses give our towns local employment and their character.
In passing, I note the exchanges on the issue of revaluations, which has been raised by my constituents. I am pleased that the Public Audit Committee is already initiating an inquiry, that the minister is on the case and that there is a willingness to work together across the parties. I welcome that, but I also gently remind the Opposition that there was once co-operation between the Conservatives and the SNP in here, which brought about the small business bonus scheme, meaning that some businesses pay no rates at all. Those were good days.
There are particular challenges in Gala and Penicuik, both of which have major supermarkets right on their doorsteps—Tesco and Asda in Gala, and Tesco and Lidl in Penicuik. However, I am not bashing supermarkets. They have their place, but their arrival has changed those town centres, although the town centre businesses are fighting back.
In Gala, the first festive gala was on Saturday 29 November, with live performances, markets, creative activities and the grand tree light-up. The gala brought a real sense of energy, with thousands of people choosing to spend their day in the town centre, which translated into meaningful support for local businesses. Indeed, many enjoyed an exceptional trading day, with several reporting record takings. There is an endeavour now to replicate that at different times of the year.
Penicuik town centre precinct hosts many local events. There is a very active community council that runs regular street fairs, summer fairs, the pumpkin patch and, of course, the biggest event of the year—the Christmas fair and Christmas lights switch-on. It is a great opportunity for local businesses to showcase what they are doing, and it draws local people back to the heart of Penicuik.
In those towns and across the Borders and Midlothian, the common ridings not only emphasise the local history and culture but help the tills to ring and provide work for blacksmiths, stables and hospitality.
I know many of my local businesses. For me, it would be invidious to name some and not others, but, following Douglas Ross, I will make one exception and name the Central Bar in Peebles, which is a free house that is small but perfectly formed. During Covid, Roddy MacKay, the owner, did not qualify for a bean in financial support. However, he did not lie down in defeat—he spruced up the interior, and there are now hanging baskets outside. He recently won an award for his little pub. For me, that is the spirit of a local business, which is replicated throughout my constituency. During those tough Covid years, and during the tough days now due to inflation and the economy, they can flourish—but they will always need local support.
18:07
I remind members of my entry in the register of members’ interests: I am a small farmer in Moray.
I join others in thanking Rachael Hamilton for securing a very important debate about the value of small businesses, not just on small business Saturday but across the year, and the value of what they do, particularly in rural communities such as those in Moray, where I live.
Although Moray might be home to some of the bigger names such as Walker’s Shortbread, Johnstons of Elgin and Baxters, it is also home to some really promising new starts and growing small businesses. I have had the pleasure of lodging motions to welcome some of their major achievements this year. They include Kompassion Kombucha, W Reid butchers in Hopeman, and the microbrewery Mind Hop Brewery, which produces Moray’s newest non-alcoholic beer and stout, as well as supporting mental health charities.
However, as members might expect me to say, often overlooked are some of our farmers and fishermen, who are themselves small business owners. Many are developing their businesses to support local enterprises, and they are bringing their food to the market in a variety of different and quite innovative ways. I want to recognise the value that they bring to their communities.
I will focus on a particular concern that my colleague Fergus Ewing brought up earlier, which is the changes to non-domestic rates. My inbox has been filled with messages about that issue over the past couple of weeks, and I appreciate people getting in touch with me. I will give a few examples. One small holiday-let business emailed me to say that, when it started its business, in 2020, which was already a tricky year with Covid-19, its business rates bill was £6,000 a year, and it has just received its draft valuation for 2026, which informed the business that it faces a new bill of £30,000 a year. In its words—
Will the member take an intervention?
Absolutely.
We are all congratulating businesses. Christine Grahame just congratulated the Central Bar, but a cursory look at the Scottish Assessor Association’s website shows that the Central Bar is facing a rates increase from £13,700 to more than £20,000. I wonder what the small businesses that go over the threshold and do not get any small business rates relief will be saying about how sustainable their businesses are.
I agree with Rachael Hamilton. If we believe in everything that we say about the circular economy and in supporting rural businesses and local economies, we need to support small businesses. They are the root and branch of everything that we do, and we must get behind them. I wanted to raise that point today.
Will the member take an intervention?
Yes, although I have almost finished.
I was tempted to intervene on the intervention. Of course, what happened to the Central Bar is wrong—that is why I am so pleased that there is going to be an inquiry. I am not opposed to what you are saying, because we must work together to make common sense prevail.
I cannot give you much time back Mr Eagle.
That is okay, because I am about to finish anyway.
A small business that runs bothies emailed me to say that it faces a rates bill rise from £11,000 a year to £31,000 but that nothing has changed at its site that would justify a tripling of rates. Finally, a small self-catering company in the Western Isles—somewhere I am passionate about—told me that it is facing a 209 per cent increase in its rates bill and that, if that goes ahead, the business will have to be wound up. I say that not as a joke but because I genuinely think that it will happen.
We heard earlier from Graham Dey, the Minister for Parliamentary Business, that the Scottish Government is taking the issue seriously, but I want to hear that the Government really is doing that and that things will change, because, otherwise, businesses will go under.
18:10
I will speak briefly and will not try to compete with any of my parliamentary colleagues’ recitations of the names of local small businesses that deserve praise and support. We are here to celebrate those businesses, and I am grateful to Rachael Hamilton for bringing the debate to the chamber.
It is interesting to listen to colleagues in Parliament talking about businesses in general and small businesses in particular, because there is a clear dichotomy between left and right. The left like to emphasise, as Pam Duncan-Glancy did, the importance of Government spending in supporting small businesses, whereas people of a more conservative persuasion like to think that there is some truth in the famous saying by Ronald Reagan:
“I’ve always felt the nine most terrifying words in the English language are: ‘I’m from the Government, and I’m here to help.’”
He said that 40 years ago next year, but it is still true.
Most businesspeople whom I have come across have one simple request for politicians: “Get out of the way and let us get on with running our businesses.” They make that simple request, but what they get from this Parliament in particular is an unending torrent of regulation and interference that just gets in the way of business, adds to their costs and takes them away from their driving purpose.
In the time that I have left, I will talk about one specific thing. We must not believe that there is somehow an endless supply of well-motivated, brilliant small businesspeople in this country, because there is not. They are a precious commodity and the backbone of our economy. We all agree with that, but if we want more businesses to exist in Scotland, we have to stop pretending that those people will suddenly pop up.
Businesses emerge from a culture, and the thing that most concerns me in our country is that we need to nourish the spirit of enterprise and entrepreneurship, which is not going to happen in a vacuum.
Does the member also recognise that one part of the culture that people come from is the public services that we all rely on, including roads, street lighting, street cleaning, schools and healthcare, all of which rely on taxation, and that we need both?
There will come a point when people of Mercedes Villalba’s persuasion will kill the goose that lays the golden egg. We do depend on businesses as a source of taxation, but, if we want great public services in Scotland, as the Labour party claims it does, we have to stop taxing and regulating small businesses to the point of near death. That is what we see being called for by the parties of the left.
Will the member take an intervention?
I will give way. I had meant to sit down by now, but I will give way.
I am aware that other Conservative members have referred to the body blow caused by the increase in employer national insurance contributions. If we add to that energy and supply costs, the blame can be laid at the door of the Labour Government at Westminster.
The reality is that the parties on the left all believe in the policy of increasing taxation, growing the size of the state and having more and more Government interference, but all of that strangles the vital spark of our economy, which is the spirit of entrepreneurship and enterprise. That is the spirit that drives someone to get up in the morning with an idea and to go out to work to make it a reality and to find customers to sell goods and services to. If we do not accept the nature of that spirit and its fragility, and if we do not recognise the importance of our speaking often and speaking up about those things, we will gradually strangle the lifeblood of our economy.
That has to start in schools, colleges and universities. Across our society, we must make it easier for people to start businesses. We must relegate the risk-averse fear of failure to something else.
I am being told to sit down, so I will sit down.
18:15
I thank Rachael Hamilton for bringing this important debate to the chamber. The subject is very close to my heart. Before I joined politics, I was heavily involved in the catering industry—I draw colleagues’ attention to my entry in the register of members’ interests.
Small businesses are the lifeblood of our neighbourhoods. They create wealth, provide community and bless their neighbourhoods with a rich and distinctive identity. Take Argonaut Books, a thriving independent bookshop down the road from my office on Leith Walk, which I visited last month. Argonaut is a shining example of the qualities that small business Saturday seeks to champion. It satisfies our niche tastes. I was amazed by the sheer range of books on sale. It gives the area a distinctive identity and, with its bustling cafe, it provides a kind of community that a larger business simply could not replicate. It ensures that the community grows with it. The cafe buys its coffee from Artisan Roast Coffee Roasters, its cake from Tasty Buns Bakery and its tea from PekoeTea—an example of local businesses working together. Leith Walk today is a rich tapestry of successful local businesses.
While I firmly believe in the role of the state in regenerating communities, that role must be played in partnership with small businesses. Despite the successes, I am aware of the challenges that small businesses face. To run a small business is to take a risk. The UK Government is helping small businesses to face that risk, with funding to make training for apprentices under 25 completely free for small and medium-sized enterprises, the chance to open up individual savings accounts—ISAs—for investment in SMEs and a guarantee that customs duties will be levelled on parcels of any value, to stop online firms undercutting high-street businesses.
The motion notes that the
“recognition of small businesses must continue throughout the year”,
beyond small business Saturday. I agree, and I would echo the words of Guy Hinks, the Scotland chair of the Federation of Small Businesses, in his statement on the recent UK budget:
“All eyes will be on the Scottish Government’s own Budget in January and how they invest the extra £820 million they are set to receive”.
Small businesses in Scotland have made clear to the Scottish Government what they need. It remains to be seen whether the budget will honour the spirit of small business Saturday and lend a helping hand to those—like my family—who want to take the chance to establish a small business.
18:18
This evening’s debate, secured by Rachael Hamilton, has been really important, and it is an opportunity for all of us to acknowledge the fantastic small businesses that we have in our constituencies and regions.
I will take the debate in a different direction, however, and talk about business improvement districts, or BIDs as we know them. I acknowledge the value that they can bring to our towns and city centres, but very real concerns have been raised by businesses right across Scotland about how the programmes operate in practice. Many BIDs have delivered positive outcomes: they have supported local events, improved town centre marketing and enhanced public spaces, and they have helped to create a local sense of pride. Where they work well, they are driven by committed people with a shared vision for town centre regeneration. However, we have to listen very carefully to the voices of businesses that feel that the system is not always fair, is not always representative and is not always delivering value for money for all those who are required to contribute.
One of the most consistent concerns raised by businesses is about the fairness of how BIDs are applied. Typically, the levy is based on rateable value, yet the benefits are not always felt equally. Many small businesses tell me—other members are probably told this, too—that they struggle to see a clear return on their contributions, particularly at a time when operating costs remain high and economic pressures persist. We have heard a lot about that in this evening’s debate.
There is also a growing perception that BIDs tend to favour shops that sell goods over businesses that provide services. Retail businesses may benefit directly from footfall-driven initiatives, such as marketing campaigns, festivals, street furniture and seasonal events. However, that contrasts with the situation of service-based businesses, such as accountants, mortgage advisers, tradespeople, childcare providers and professional services, which often operate on an appointments basis and rely less on passing trade. For those businesses, there is less of a link between the BID levy that they pay and the benefits that they receive, and it can feel almost as though they are not part of the BID system. They are asked to contribute equally, but their business model means that they are less likely to benefit from initiatives that are designed primarily to promote retail visibility. That imbalance raises legitimate questions about equity and whether the BID structures are sufficiently flexible to reflect the diverse nature of our town centre economies.
Concerns have also been raised about the transparency of the BID process and the engagement that is undertaken as part of it. Some businesses report that there is limited consultation beyond the initial ballot that takes place, and decisions are perceived to be driven by a narrow range of interests. I hope that that is not the case, but that reflects what businesses have told me. If BIDs are to remain credible, it must be ensured that there is on-going engagement with all levy payers, particularly small businesses, which often feel less heard.
There is a point that I want to put directly to the minister. I spoke to South Lanarkshire Council about the issue, which referred me to the Scottish Government, but when I spoke to the Scottish Government about it, I was referred back to the council. What I am trying to figure out—I hope that the minister will be so kind as to provide an explanation in his summing-up remarks—is who is in charge of the BID policy, who can amend that policy and who can make exemptions for businesses that do not benefit from BIDs, if it is the case that that is happening. Enabling such exemptions would be a good way forward. It would show our small businesses that we support them, but that we also recognise that not all initiatives benefit them.
18:22
I thank Rachael Hamilton for bringing this important topic to the chamber. We can tell from the speeches that have been made how strongly people feel about the contribution that their local small businesses make to their communities and the local economy. The community dimension is very important, as Pam Gosal and Christine Grahame said. Local businesses are the hub of our local communities and they play an important role in supporting economic development at community level.
I am old enough to remember when members’ business debates were quite consensual and were not intended to be too party political, but a number of highly political issues have been raised this evening. I cannot promise to respond to them all, but I will address the rates issue later in my response.
Some members have mentioned businesses in their own constituencies. I celebrated small business Saturday by visiting Crepes & Coffee and Chuck McCall Highland Wear in Elgin, and I bought my dinner from Ada Turkish Restaurant—it was fantastic.
This debate is about not only the businesses but the people behind the businesses, so I very much associate myself with Douglas Ross’s comments about Pearl Hamilton, who I have known well for many years. I have dealt with her many times over the years, either wearing her FSB hat or as someone running her own business in Forres. I wish her all the best for her future as she prepares to retire in the next few weeks.
We are also celebrating resilience among the small business community. Many members have mentioned some of the pressures that the small business community has been under in recent years and decades. The advent and expansion of supermarkets in our towns have been mentioned, and online trading has had an impact on our high streets. Rising energy bills and national insurance contributions have taken their toll on profitability, while general inflation and the increasing costs of raw materials are big issues that our small business community has had to contend with.
As a Government, we recognise and welcome the huge contribution that small businesses make to the economic and social fabric of communities across Scotland. They are valued everywhere, whether they are on our high streets or online, but they are particularly vital in our rural areas—I say that as an MSP who represents a large rural constituency. Rachael Hamilton, who lodged the motion for the debate, also represents a rural constituency. Often, small businesses are a lifeline for those who are living in more remote areas and in our towns and villages across the country.
As part of my official duties as Minister for Business and Employment, I see examples of small businesses almost every day. Those businesses are in our hospitality sector, where family-owned restaurants and providers continue to be a key part of our high streets; in our retail sector, where small stores provide essential products and are just as essential for our communities; and in the wider tourism sector, which has been referenced by many members. Those businesses promote the best of our country to the global market and make Scotland a world-class destination to visit, which, in turn, benefits small businesses across the country.
As Tim Eagle said, it is not just about retail, tourism or hospitality; we also have fishing and agricultural businesses. I also visit many tech businesses around the country, including games businesses in Elgin. We have to remind ourselves that they are also small businesses, and there are many of them across the country. It is not just about our high streets.
The minister has rightly raised all the varying types of businesses. In doing so, he is making the point that I was trying to raise about BIDs. Some businesses will not benefit as much as others. Is it time to review the BID process, to see whether it can be made fairer?
I am unaware of local demand for a review of the BID system, but, if it is an issue, we should reflect on that. If the member wants to write to ministers about it, we will certainly investigate whether there are issues that need to be reviewed. In the past couple of weeks, Glasgow has voted successfully to put a BID in place in the city centre, which is a good sign and a sign of the BID system’s vitality. Many businesses in Glasgow’s city centre will benefit, as will the local economy.
The business community is diverse and it provides a pipeline for skills, careers and employment. The opportunities that it creates inspire young people to get into the market.
I appreciate the point about some businesses feeling that they do not benefit from BIDs. My office in Galashiels took part in the BID that has just started in that area. It is important to recognise that if BIDs are operated properly, they benefit the surrounding environment. A BID may not mean direct footfall to an individual business, but it will make the place look and feel better, which is good.
According to “Businesses in Scotland: 2025”, which was published on 3 December, between 2024 and 2025 there was an increase in the number of small-sized businesses in Scotland. That is an important backdrop to the debate, given some of the points that members have made. As of March 2025, an estimated 381,855 small and medium-sized enterprises were operating in Scotland, which provide an estimated 1.2 million jobs and 56.2 per cent of private sector employment. Of course, for many of the reasons that have been mentioned by members, we cannot be complacent and we want the data to be positive in all parts of the country.
Although I cannot comment about the details of future support, which, of course, is a matter for the budget that will be published on 13 January, I point to the support that we are already providing to the small business community in Scotland. A range of measures are in place, including place-based, community-led regeneration in our most disadvantaged communities, which has seen investment of up to £62 million in 2025-26. That approach is very popular in the small business community because it delivers our regeneration policy by revitalising town centres, supporting town centre living, addressing the blight of vacant and derelict land and buildings, and supporting community ownership. When I meet the Federation of Small Businesses or individual small businesses, they point to the importance of that support.
rose—
Am I able to take one more intervention, Presiding Officer?
No, minister.
Apologies. I would otherwise have taken that intervention.
Those projects are revitalising our town centres and villages. We have worked with Scotland’s Towns Partnership on the Scotland loves local campaign and various other measures.
Given that I am running out of time, I will turn to the rates issue. I remind members that our small business bonus scheme is the most generous in the UK and that around half of properties in the retail, hospitality and leisure sectors are eligible for 100 per cent relief under that scheme, on top of other reliefs that have been introduced.
Members have mentioned revaluation. We are listening and we recognise the concerns that are being expressed. The First Minister made that point last Thursday in this chamber. We reiterate the point that the assessors are at arm’s length from Government and are independent, but I am sure that the issue will be on-going, and we are listening closely. I am an MSP for many businesses that will, potentially, be affected, and we will listen to the concerns that are being expressed. Clearly, I am not in a position to make any announcement about that during this debate. In addition, the budget is coming up.
Again, I thank Rachael Hamilton for bringing the debate to the Parliament. Small business Saturday is a great opportunity to celebrate our small business community and to recognise how resilient it has been, over past decades in particular, and the valuable role that it will play in Scotland.
Meeting closed at 18:31.Air ais
Decision Time