Ray of hope on high street but Scotland outstripped by rest of UK

By CLAIRE SMITH
Published on 31/10/2012 12:22

AN INCREASE in spending on Scottish high streets indicates “tentative recovery in consumer confidence”, the finance secretary has said.

John Swinney said a one per cent rise in the value of retail sales and a 0.9 per cent rise in the total value of sales during the third quarter of this year was a vote of confidence by

consumers.

However, any retail bounce in Scotland is lower than that in the UK as a whole, where sales volume was up 1.5 per cent and value up 3.3 per cent.

Mr Swinney said: “These

official figures show that there have been increases in both the amount of goods bought and the amount spent in the retail sector in Scotland in the period covering July to September this year.

“The 0.9 per cent increase in sales comes on the back of a fall of 0.3 per cent in the previous quarter and points to a

tentative recovery in consumer confidence and purchasing during this period.”

He added: “Our council tax freeze has resulted in

average savings of £479 for households across the country since 2008 and our policy of no compulsory redundancies has given confidence to the

thousands of people in the

public sector.

“This is coupled with action to support the retail sector directly. We have maintained Scotland’s position as the most supportive business environment in the UK.”

Earlier this month, figures from the Scottish Retail

Consortium (SRC) also highlighted a rise in spending,

although it said sales were flat after accounting for inflation.

The boost in sales revealed by the SRC was mostly down to a 3.4 per cent increase in food sales – which analysts suggested could be linked to people shopping ahead for things like

confectionary and biscuits in the run-up to Christmas.

Discount and promotional schemes were also said to have encouraged shoppers.