Scottish Labour has accused the SNP of overseeing a sharp rise in empty shop units – just as the Chancellor plans a hike in business rates south of the border that could force even more closures.

Daniel Johnson, Scottish Labour’s economy spokesman, points to data showing 12.3% of Scotland’s shop units are empty (2023/24), a second consecutive yearly increase. More than a third (35.3%) were vacant in South Ayrshire.

He said the SNP had “starved local communities of funding and failed to fully pass on rates relief to local businesses.”

However, retailers are becoming more worried by reports that the Labour government at Westminster is planning a hike in business rates for department stores and supermarkets.

Rachel Reeves is looking to the high street giants to help plug a £5 billion gap in public finances.

Her plans have prompted outrage among the big retailers. Marks & Spencer is leading a group of opponents that includes Asda, Morrisons, Primark, Sainsbury’s, Tesco and B&Q owner Kingfisher. M&S is said to have warned that 111 branches could be forced to close if hit with higher bills.

It said: “Given larger retailers are often anchor tenants on the high street, taxing them to support smaller stores is a false economy – if larger shops close, smaller shops suffer.

“The proposed reforms could therefore accelerate the decline of the high street by encouraging retailers to close larger high street stores.”

Business rates are devolved to Scotland where there is already a higher tax for large premises, but any further hike south of the border could encourage Holyrood to follow with a further increase.

This year’s levy, introduced on 1 April saw firms occupying larger commercial premises in Scotland paying £54.7m more than their counterparts in England. According to recent figures, retail properties alone will contribute £9.1m of the total. Around 11,360 commercial properties in Scotland are subject to this surcharge, which applies to properties with a rateable value of £100,000 or more.

Scottish Labour has renewed pledges to support high streets by delivering fair funding for local government and by reforming business rates to level the playing field between local businesses and online giants.

It has been reported that the Chancellor’s proposed higher rates will also hit firms in other sectors such as hotels, restaurants, zoos, cinemas and breweries.

A Treasury spokesman said: “To deliver our manifesto pledge and provide certainty and support to the high street we intend to introduce permanently lower tax rates for retail, hospitality, and leisure properties from next year.

“Unlike the current relief for these properties, there will be no cash cap on the new lower tax rates, supporting some of Britain’s most loved high street chains to continue to create jobs and grow the economy.”

Meanwhile, industry research shows the UK’s high streets are being transformed by a significant increase in shops and commercial buildings being turned into homes.

Adam Stiles, managing director at Helix Financial Partners, said: “Without question, more and more property investors and developers are seeking opportunities to convert commercial properties into residential homes, and have been doing so for some time. The UK high street is being transformed in real time.”

Bob Singh, founder of Chess Mortgages, said that “thanks to the exponential rise of online shopping, the UK high street is dying a painful death.”

He added: “Once bustling shopping centres and high streets are now much quieter. The effects of COVID-19 and high business rates have seen many shops close over the years.

“Working from home has also left many office buildings vacant and these, too, make great commercial to residential conversions. We’re seeing a lot more of this now.”