Buoyant household disposable incomes and confident consumers are critical to the health of the retail industry and all who rely on it, whether suppliers or the quarter of a million Scots who work in the sector.

That’s why retailers keep a beady eye on changes to personal taxation when government budgets come around. Tax increases mean less disposable income with the knock-on effect on discretionary spending.

And so it was a relief there were no further increases to income tax rates in the Scottish Budget. However, the implications of the rescinding of the council tax freeze are becoming clearer.

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Council tax doesn't work for Glasgow, we need to redraw the map

Council tax raises £2.9 billion for Scotland’s thirty-two local authorities, who are in the throes of setting council tax rates for this year. Most seem set for uplifts triple the rate of inflation. The factors said to underpin this include greater outlays on wage bills, and extra money to cover the Chancellor’s hikes to employers’ national insurance.

Yet with the average council tax rise seemingly about 8%, this is set to take a £234 million bite out of........

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