 Mae ydych chi'n gwybod i'r cystafell ar y trafod ar Scotland i'r cystafell. Mae'r minister yn gweithio y cwestiynau ar y cystafell, ac yn gweld i chi'n amser o mwy o yr interventio. Mae'n gwybod i'r minister i'r cystafell ar yr 10 ysgol. Felly, rydyn ni'n cymryd i'r cystafell ar y trafod ar Scotland i'r cystafell. The strategy recognises the importance of retail to Scotland's communities, society, environment and economy. It has been developed in collaboration with businesses, trade unions, academia and the public sector and I am thankful for the contributions of each person involved. Our shops often support neighbourhoods and communities, whether in cities or towns, rural areas or islands, where the local shop is often the provider of lifeline products. We attract people into towns and cities, supporting other economic sectors such as tourism, culture and hospitality. Retail also offers many people successful and flexible careers, from a first job in a local shop through distribution, supply chain businesses, large stores, ownership or management. With more than 240,000 employees, almost 10 per cent of Scotland's entire workforce, retail is our largest private sector employer, contributing £6.1 billion to the Scottish economy in 2019. There are more than 15,500 retail businesses in Scotland, a growth of almost 2,000 since 2018. A strong, prosperous and vibrant retail sector is essential to fulfilling the vision of a wellbeing economy as we set out in Scotland's national strategy for economic transformation. There is no doubt, though, that our retailers and their staff have had a challenging time over the last two years. I have been incredibly grateful for so many going above and beyond for their customers and the most vulnerable in society during this exceptional period. Since the Covid-19 pandemic started, the Scottish Government has done what it can to help a business, including providing more than £4.5 billion of support. We are the only Government in the UK to offer 100 per cent rates relief for the past two years without any cap and are preventing a clip-edge return to full liability by extending that support for retail through rates relief for the first three months of 2022-23. We are supporting our high streets with a £10 million Scotland Loves local programme and the £80 million Covid economic recovery fund, which encourages people to use and support their local businesses. The pandemic has accelerated longer-term trends such as online shopping, sustainable practices and the changing face of the high street. There remain challenges ahead with staff shortages, rising inflation and the growing squeeze on living standards and business costs as a result of global trends and, of course, Brexit. Our retail strategy sets out actions designed to support the sector, rebuild after Covid, address longer-term challenges and maximise opportunities to fulfil its potential. As we have seen during the pandemic, our retailers have been agile and creative in their response to meeting customer needs. Many have expanded their online and delivery capability. Many have switched to more ethical and sustainable products, packaging, sourcing and distribution. There are more retail businesses now than before the pandemic. That innovative and enterprising spirit will stand the sector in good stead as it evolves to meet the challenges and opportunities of the future. Having set out in our strategic framework update how we will move beyond the pandemic, the time is right for publishing that strategy. It builds on the national strategy for economic transformation and Covid recovery strategy, setting out a shared vision for retail to become an exemplar for inclusive economic growth and play its part in creating a fairer greener Scotland. The retail strategy seeks to do this by building on the strengths of the sector so that it is successful, resilient, sustainable and profitable to the benefit of all in Scotland. We want to support innovation and entrepreneurship and seize opportunities from new technologies and markets to boost productivity and grow businesses. In that way, our retailers can benefit from and contribute to the bold programme of actions that will transform our economy over the next decade. At the heart of that and a successful sector are our people. As we further orient our economy towards wellbeing and fairness to significantly reduce poverty, we want to make fair work and skills development cornerstones of retail in Scotland. We want all retail workers to have fulfilling and secure jobs. As I said in my statement to Parliament on 24 October last year, the retail strategy will have fair work at its core, benefiting retail businesses by making them more attractive to workers and more resilient, productive and profitable. Unfortunately, employment law is currently reserved to the UK Government. With those powers, we could do more to protect and enhance workers' rights, tackle poverty and increase fairness through legislation. However, we are determined to do all that we can with the powers that we have to make a difference. I can announce today that we will work in collaboration with the sector and trade unions to deliver a fair work agreement that retailers can sign up to and demonstrate an on-going commitment to fair work principles. That includes providing good, quality, secure employment and giving employees an effective voice. In doing so, I expect that employers will take action to improve fair work conditions across retail and contribute to the reduction of in-work poverty. Retail is a great choice for many. It offers opportunities for entry into the workforce, career progression and flexible working. It is vital that our workers have the right skills to have rewarding and secure careers and to grow businesses. That means strong customer service skills, which drive sales and business profitability. It also means new skills, for example, to harness the potential of new technology such as self-scan check-outs and online order systems. That is why we will work with Skills Development Scotland, the Scottish Funding Council and other partners to develop a retail skills audit and action plan. It will support reskilling or upskilling as jobs change to meet the needs of retail businesses and the careers of the people that they employ. A further aim is to strengthen retail's contribution to the economic and social success of our local communities. Different locations have bespoke needs, and our retail sector has a pivotal role in helping to create and maintain successful places. We know that the pandemic has driven down football in some places, while others, including many local high streets, have thrived. There are already a number of place-based programmes to support retailers, such as Scotland Loves Local and Business Improvement Districts. The actions in that strategy will support our retailers to think local, to work collaboratively with their communities and to support local businesses and supply chains where possible, to promote town and city centres and to consider greater responses to vacant retail units. In doing so, we believe that that will build greater wellbeing in our neighbourhoods, towns and city centres. Reducing Scotland's carbon footprint is essential to achieving our climate change targets and securing a just transition to a net zero economy by 2045. Our retailers have a crucial role in that, through building secure local supply chains, adopting circular practices, increasing repair and reuse options and improving sustainable operations. Many retailers are already decarbonising their supply chains, setting their own net zero targets and encouraging customers to lead lower carbon lifestyles, which is great to see. That strategy builds on that. We will, for example, develop a just transition plan for retail that will progress an environmentally and socially sustainable sector in the economy of the future. That strategy rightly has a strong delivery focus, and we as a Government will play our part on that. However, we cannot and should not be the sole vehicle for change. That is why we will establish a new industry leadership group for retail. Building on the collaboration that is involved in creating that strategy, the industry leadership group will oversee the development and delivery of strategy commitments, such as those that I have just mentioned. It will focus on the actions in the national strategy for economic transformation that will directly support the retail sector. The leadership group will also agree a delivery plan that will include a critical review process and timelines for measuring success. I will co-chair the group and look forward to this work getting under way. The title of that strategy, Getting the Right Change, is more than a play on words. Let me be clear. The publication of that strategy is just the beginning. It is the start of a new conversation with businesses and trade unions, customers and workers, about how to support our retailers overcome the challenges and seize opportunities as we rebuild after Covid, about how our recovery should improve the lives of people and their families, people who work in retail and the customers that they serve. Our vision is for a thriving, successful and profitable retail sector in Scotland that is an exemplar of inclusive economic growth. That strategy can make that vision a reality. Ensure that we do indeed get the right change. Thank you. The minister will now take questions on the issues raised in his statement. I intend to allow around 20 minutes for questions after which we will move on to the next item of business. It would be helpful if those members who wish to ask a question were to press the request to speak buttons now and at the same time to check in fact that their cards are in. Thank you, Deputy Presiding Officer. I thank the minister for early sight of the statement. I also welcome the collaborative approach because he knows, as well as the rest of us, that towards the end of last year businesses' industry were saying that the Scottish Government hadn't consulted them enough, so it's good to hear that there is a change in direction to address their concerns. I've really got three areas of questioning. Firstly, on a short-term basis, obviously businesses are desperate for support as quickly as possible. What analysis has been taking place of some of the successful schemes, for example, in Northern Ireland with a high street scheme, which is obviously proven to be generally very successful? What analysis has been undertaken about the bid systems in Scottish towns because I'm aware in mid-Scotland and Fife of some that have been particularly successful, but sadly there are others that have not been successful. I think that it's interesting as to why some have worked and why some have not worked, so I've been interested in what the minister has got to say about that. Secondly, can I ask what commitment the Scottish Government has made to look at the transportation issues? People are not going to come to some of our town centres unless there is good-quality transport availability, so I've been interested to know what discussions the minister is having with his colleagues in the transport portfolio. Finally, on a long-term basis, obviously there has to be a commitment to try to address some of the rising costs that business is facing. I think that that's the main concern that they have. Does the Scottish Government have a firm plan to look at a reform and a modernisation of the business rate system, which many businesses find extremely complex? Can I thank Liz Smith for her question and can I also welcome her support for the collaborative approach that we are taking through an industry leadership group? Indeed, is that collaborative approach going to be fundamental to realising the ambitions on this strategy? To address the points in order that Liz Smith raised, she asked about short-term interventions and particularly how our analysis of those interventions is informed. We have provided, as I outlined in the statement, a range of support over the past two years throughout the pandemic. Most recently was the £80 million Covid economic recovery fund, which has been provided to local authorities. Clearly there was an opportunity for local authorities to support businesses in their areas in a way that they think is most specific. One point that I would note is that reference was made to the voucher scheme in Northern Ireland. We have the Scotland Loves local fund and the Scotland Loves local gift card. Glasgow City Council, I know, is looking at that as a mechanism of delivering support. What is fundamental for me is to ensure that local authorities in working in partnership with local authorities, who were members of the steering, with local authority engagement throughout the process of designing the strategy via the steering group, is to ensure that that is that flexibility there. Although there are certain common challenges that retail will face in all parts of Scotland, some of the challenges will be unique to particular localities. Ensuring that we provide that support to local authorities to enable them to support and work with businesses. That often happens through other ways as well. There is the place-based investment programme, which obviously provides capital support, and then there is the Scotland Loves local programme, which is well £10 million over five years. With regard to business improvements districts, we are very grateful for the work that Scotland Towns Partnerships undertakes in delivering business improvement districts. We have provided over £500,000 support throughout the pandemic to support bids. We recognise that there have been some challenges and I am committed to continuing engagement with Scotland Towns Partnerships to learn what lessons we have given the pandemic and how we can strengthen the support that we provide for bids. On the issue of transport and access to town centres, some of that will be captured within what we are doing around the town centre action plan, which is forthcoming, and Ms Smith will also be aware of our transport aspirations with regard to, for example, 20-minute neighbourhoods as contained within the draft national planning framework for, as consistent with the sustainable travel hierarchy as set out in the national transport strategy 2. We fundamentally recognise that it is important. Ultimately, we hope that we will want to see with regard to development as an infrastructure first approach to town centre, a town centre first assessment, which again has been long-standing, but is a fundamental part of our approach to 20-minute neighbourhoods within the national planning framework. That is something that is fundamental to our thinking with regard to 20-minute neighbourhoods. On the long-term issue of the issues around non-domestic rates, I appreciate that there was some line-fake exchanges over this matter at the Finance Committee on Tuesday. Our position is that what businesses require right now, and what they ask have asked for, is stability. We do have a revaluation forthcoming. However, as I said at the Finance Committee, we very much welcome the work that is undertaken by Fraser of Allander in their review of the small business bonus scheme. Although we are committed to the small business bonus scheme for this parliamentary term, we are going to establish a short-life working group to reflect on and to consider the report that Fraser of Allander Institute has provided. We would all recognise that more data will allow us to be more bespoke in the design of our policies and make sure that all of our policy interventions on non-domestic rates and other taxis deliver the maximum impact that we want to see. Daniel Johnson, who is joining us remotely. Thank you, Deputy Presiding Officer. I apologise to the chamber for not being there in person. What I consider to be an incredibly important statement is that I remind the chamber of my register of interests. I am a director of a company with residual retail interests, and I am also a member of the trade union Azdor. I would really welcome this report very earnestly. I very much agree with the preamble provided by the minister, but I would also add one important element. Retail is fundamentally the interface where people's salaries get recycled into the productive economy. Therefore, retaining retail is vital not just for the people employed in retail or the people obtaining goods and services from them, but for the whole of the supply chain and the productive economy. I think that the report is useful. It identifies the right area. What I would question is whether it identifies clear and new steps to address those. First, in productivity and technology we know that there is a significant issue, especially among small retailers, in terms of technology uptake. Why are there no new initiatives identified to provide the flexible and clear support that they need? Likewise on skills, I would say that we need more than just an audit of skills programmes. I wonder whether the new leadership group could have been empowered to design and deploy new skills programmes that would deliver the focus and flexibility that retail employers say is currently lacking. On time, centres and place, the linkage between office workers and retail football is key. On the short term, will the Scottish Government undertake a public reassurance programme to encourage people to get back into the offices and deliver a football? Will that element be incorporated into future iterations? Finally, can I reiterate the points around business rates? As was discussed at the committee, the linkage between non-domestic rates and business performance and retail, and even business rents in the retail sector, is broken. Does the Scottish Government not realise that it needs to fundamentally review this levy? Before I call on the minister to respond, could I just point out that we have used up quite a lot of the limited time available with front bench questions and answers? Although I will allow a bit of latitude, we really need to allow all MSPs who wish to ask a question to have their chance. So could I please now call for succinct answers minister and further succinct questions when I call other members? I will endeavour to be succinct, but I am happy to meet with any member who wishes to discuss any aspect of the strategy in more detail when I have had further time to consider it. So just to address the specific points that Daniel Johnson raised, yes, we have a commemorative skills audit, but that also is going to be followed up with an action plan that we will develop in partnership with Skills Development Scotland, with the SFC and other partners in the ILG will lead on that particular work as well. He is absolutely correct to recognise the essential role that retail plays, but it is fundamental as part of the broader ecosystem of our town centres and city centres. He touched on the point regarding the turn to office. Obviously it will be for businesses to take a hybrid approach, and I think that we would all recognise that the experience of hybrid working has proven to be very useful and beneficial for many people, and so individual businesses, along with public sector organisations, will take their own decisions about how they move forward in incorporating a hybrid working going forward. What I want to be absolutely clear on is that I would encourage people to go out and to shop in their high streets and city centres and support their local businesses. I have already touched on the points around business rates and my answer to this minister I will not repeat. The final point that I would just make again with regard to encouraging people into town centres is that community wealth building features throughout this strategy, and there is the power of anchor institutions, both public sector and private sector, to play a role in drawing people into our localities, which can support retail and a wider economy. With our town centres struggling for many years with the combination of online shopping and industrial shopping estates opening up with town centres, I ask if the minister agrees with me that small independent retail businesses play a crucial role in providing essential services for our communities. Absolutely, I agree entirely. There is a crucial role for small retail businesses, and that has been exceptionally apparent during the pandemic, when they have provided lifeline goods and services, including to those who were vulnerable or shielding, and I would want to reiterate my thanks to all those who have gone above and beyond from the communities that they serve. The actions in this strategy will support our retailers to think local work collaboratively in their communities and support local businesses and supply chains, in line with the community wealth building approach. As I said in my statement, this is a people-centred approach to local economic development, which seeks to ensure that wealth is less extracted with other more redirected back into the local economy. Jamie Halcro Johnston will be followed by Christine Grahame. Can the minister advise off who will make up the new industry leadership group for retail, how progressed they are, with appointing a co-chair, and when he expects the first meeting will take place? I will update Parliament in due course, but my aspiration is that the ILOG will meet for the first time prior to summer recess. Minister, I put on record my support and thanks to all the small retailers in the Midlothian, South Tweedian and Lauderdale for coming through the terrible challenges of Covid. However, given the vital contribution that they make to the wellbeing of our town centres and the local economy in Melrose, Gallasheels, Peebles and Perigook, for example, how can my small business retailers contribute to Scottish Government thinking and the strategy? I thank Christine Grahame for her question. The key to that is going to be the industry leadership group, which I have outlined in the statement. There will be an opportunity for the direct for industry leaders to feed into that, as well as trade union representation. However, I want to see a wider conversation and discussion follow on from the publication of this retail strategy, and I would encourage everyone involved in the retail sector, both those who are employed within the sector and all those who use the sector, to feed into that approach. I am happy to go and meet with the member and discuss in more detail as I am happy to meet with any member across the chamber to discuss further. Clare Baker, who is joining us remotely to be followed by Gordon MacDonald. Thank you, Presiding Officer. Following the collapse of major retailers, or the rationalisation of some of the larger retailers by closing stores, I will the retail strategy deal with the ownership of large empty units, which I see across my own region, that avoid speculation and incentivise investment. Minister. It is an excellent question. At the heart of that is going to be around our community wealth building approach. Obviously, we want to stimulate our local economies to see what you increase demand for vacant units. However, there is a range of actions that we are going to be taking to help realise that. Community wealth building is going to be a central element. Some of the things we are going to be doing around planning reform as well, land assembly and compulsory purchase, our support for regeneration through the place-based investment programme. There is a range of measures that are going to be taking place. Fundamental, we need to increase demand for units and that is about stimulating the local economies. The community wealth building approach, which is well embedded in many local authorities across Scotland, is going to be central to that. Life scene has moved from an extractive model to a model that sees more wealth circulating locally and retained by local communities. Gordon MacDonald, to be followed by Beatrice Wissons. Thank you, Presiding Officer. The retail sector has and is facing sustained damage caused by Brexit, the pandemic, the cost of the living increase crisis, and now the war in Ukraine. Given the impact on business costs and produce availability, how optimistic is the minister that this retail strategy is comprehensive enough to provide confidence to the retail sector? It is an excellent question. We are living in unprecedented times and have been really for the last five years. What I want to be clear on is that this strategy is not a panacea. It does recognise and diagnose some of the long-term systemic challenges that the retail sector has been facing, but, of course, Mr MacDonald is absolutely right to highlight the challenges that we are facing through the cost of living. That is why this will be a living document and why the IOU, one of the first tasks that we will have following establishment, is to develop a delivery plan. That can take into account emergent events, including, for example, the cost of living crisis. Beatrice Wissons, to be followed by Colette Stevenson. Rural, remote and island areas rely on local shops, which are often at the heart of the community, and I, too, pay tribute to their hard work. However, they are also faced with barriers such as high delivery costs, minimum ordering that does not always align with storage and sales capacity limits, and planning that allows new supermarkets to be built under store steps. Can the minister assure me that the issues facing local community shops like those found in my constituency and in other island and rural areas will be listened to through the new leadership group and ensured that their voices are not squeezed out? Absolutely, and I want to give that assurance to Beatrice Wissons that the individual leadership group will not just be represented by the breadth and diversity of the sector, but also the breadth and diversity of the geography of Scotland in the different localities. Like other places, the retail sector at East Kilbride has been struggling for years with companies like Debenham's going bust and others reducing the numbers of stores. Can the minister outline how the retail strategy will benefit towns like East Kilbride with a shopping centre rather than a high street and help to revitalise what is a really important part of our town? Yes, absolutely. At the heart of this, it is to so much of our approach in local economic development as a place-based approach. Creating communities in places that people want to visit, live and shop in will be vital to our Covid recovery, not only for retail but for culture, hospitality and tourism, too. Whether in high streets or in shopping centres, retail is vital to our local communities. The losses of anchor stores have an impact, as the member highlights. We want retail businesses in all our locations in our local communities to be successful and profitable by being more productive and innovative, supporting entrepreneurship and driving business growth. The shopping centre in East Kilbride, as with other towns, has good public transport connections in a large community living in close proximity. There are also a number of place-based programmes that can support retailers and shopping centres, such as Scotland Loves Local and Business Improvement Districts, supported by Scotland's Towns Partnership. I thank the minister for his statement and for the helpful discussions that we have had about the strategy prior to today. We are all aware of the challenges of automation in relation to job destruction, so I am pleased to see that the strategy discusses opportunities for automation to drive up product standards and reduce waste. Can the minister outline his thinking about how automation can also improve working conditions in retail and help us to meet wider sustainability goals? Can he confirm what trade union representation will be on the industry leadership group? I am sorry, but I did not pick up the very last part of Maggie Chapman's question. Minister, please resume your seat. Maggie Chapman, could you please repeat just the last part of your question? Of course. Thank you. Apologies. Can you confirm what trade union representation will be on the industry leadership group? On that particular point, I have already been very constructive in conversations with Tracy Gilbert at Osdaw. Osdaw will be invited to be part of the group, and I will be looking at waste to ensure maximum worker representation on the group. I welcome any views from members across the chamber. Broadly, on the point of automation, Maggie Chapman is absolutely correct. It can be easy to focus on automation as something that displaces jobs rather than augment jobs. One of the opportunities that we face in retail is that augmentation to drive-up standards, drive-up quality, create new jobs that are more fulfilling and create opportunities. That is why we are going to take forward the skills audit and skills action plan, and it is also why the strategy aligns with our national strategy for economic transformation, particularly around our measures to drive up productivity. I look forward to taking these conversations forward in the IOG and more widely with members across the chamber. The strategy document claims that the Scottish Government has delivered future-proofed mobile and broadband connectivity in remote, rural and island communities the length and breadth of Scotland. That claim is laughable. As the minister responsible for Scotland's digital strategy, when will the Scottish Government deliver on its R100 commitments and ensure that rural retailers can take full advantage of the opportunities of doing business online? We are taking action as a Government, and I remind the member that telecommunications is a reserve matter. If only we had more powers in this Parliament, we could do far more. I agree that this retail strategy represents a real opportunity to positively advance Scotland's wellbeing economy. How will the strategy feed into Scotland's broader vision of an economic system that is based on wellbeing, fair work and community empowerment? A strong, prosperous and vibrant retail sector is essential to the vision of a wellbeing economy, described in Scotland's new tenure's national strategy for economic transformation. The retail strategy contains both current initiatives and future actions that will help to fulfil that vision and rebuild after Covid in a fair and sustainable way. Supporting all retailers to align with the community wealth building approach is important. That includes local ownership and hiring of staff, adoption of fair work practices, engaging with community organisations and considering local enterprises in the supply chain of which are important elements. That helps to ensure that local people and businesses have a genuine stake in producing, owning and enjoying the wealth that they create. Moving us closer to the more just, equitable and sustainable society, we want, as we rebuild our post-Covid-19 economy in Scotland. That concludes the statement of retail strategy for Scotland. I thank members and the minister for their co-operation. It is now time to move on to the next item of business.