Labour unveils plan to hand each Scot £75 to boost high street recovery

Every adult in Scotland would be offered £75 to spend on high streets and the opportunity to go on state-subsidised domestic holidays under economic recovery plans being put forward by Labour.

Anas Sarwar said that the package of measures would amount to the largest stimulus in the history of devolution and offer a major boost to the country’s ailing retail and tourism industries.

Under the proposals, every Scot aged 16 or over would receive a prepaid card to the value of £75 which they could spend in non-food businesses over six months.

Meanwhile, for those choosing to spend at least two days on holiday in Scotland, the government would pay up to £100 towards a third night in accommodation. The 'third night free' scheme would be available to Scottish residents as well as those travelling to the country.

The flagship announcements, among the most eye-catching of the Holyrood campaign so far, were made before the major parties suspended campaigning due to the death of the Duke of Edinburgh.

The high street scheme would cost £341m, Scottish Labour said, with any unspent cash to be donated to foodbanks. Meanwhile, the party said the staycation initiative, which would run between September and November, would cost £95m, including a major advertising campaign.

It is proposed that it would be paid for with money allocated to Scotland by the Treasury to respond to the pandemic.

"Without urgent and ambitious action in towns across this country, hundreds of thousands of people face a future out of work - with empty town centres hollowing out once vibrant communities,” Mr Sarwar said.

“This is bold and ambitious thinking to aid our economic recovery and get Scotland back on track.”

Asked why the proposed £75 cards would be given to everyone, rather than the cash being targeted at those who had struggled the most due to the pandemic, Mr Sarwar said it intended to change people’s behaviour by encouraging them back onto high streets as well as supporting those on low incomes.

He acknowledged there were similarities with the Eat Out to Help Out scheme, which was popular at the time but was later seen as having contributed to a second wave of the virus, but said it would only be launched when it was safe.

The initiative was welcomed by the Scottish Retail Consortium, which had previously asked the SNP to implement a retail voucher scheme but saw its request snubbed.

“This is a big, bold and imaginative proposal from Scottish Labour to help reignite the economy after lockdown and to back shops and retail destinations which have been left reeling by the impact of the pandemic,” David Lonsdale, director of the organisation, said.

“It could trigger additional spending by shoppers beyond the value of the voucher transaction, creating an even larger economic multiplier.”

Mr Sarwar also hinted that Labour is to back a windfall tax on the profits of major companies which have benefited from the pandemic, which could be used to support the economy and small businesses.

When asked about the use of a tax to possibly extend the high street scheme, Mr Sarwar said: "I'm not going to pre-empt our manifesto next week, but I think you're getting a clear enough signal from me about the competition and the way that Amazon in particular has been a huge beneficiary at the expense of our high streets.

"There does need to be a redress of that balance if we are going to protect jobs and protect the economy in Scotland."