Alison Newton

MSPs have voted in favour of extending the legislation but ministers are yet to announce plans for the retail sector beyond September.

Commercial property lawyers at Addleshaw Goddard said indefinite extensions to the moratorium will jeopardise the real estate sector with significant implications for the Scottish economy.

The firm is looking for ministers to publish plans to support the industry ahead of the moratorium expiring, which it argues should include legislation for abolishing business rates on empty retail properties.

Alison Newton, co-head of real estate at Addleshaw Goddard, said: “The extension of the moratorium has been a relief to many thousands of business owners across Scotland, but again the government is simply kicking the can down the road and in the process putting a great deal of strain on commercial landlords.

“It’s important to remember that a large amount of retail property in the UK is owned by pension funds and local authorities, so by extending the moratorium again and again the government is putting ordinary people at financial risk.

“Further, the UK real estate sector creates a great deal of economic activity, employing millions of people, so we should be doing everything we can to ensure that investment in the sector doesn’t dry up.”

Ms Newton added: “Over the coming weeks, the government must set out a plan which seeks to end the moratorium whilst balancing the needs of both landlords and occupiers.

“One immediate relief would be for the abolition of business rates on empty retail properties, which are putting undue pressure on landlords who could otherwise be using the money to repurpose and reinvigorate their spaces to attract new tenants.”