Moray firms are shying away from investment due to the escalating cost of business rates, it was claimed yesterday.
Sarah Medcraf, chief executive of the area’s chamber of commerce, was speaking after 13 of Scotland’s leading business organisations signed a joint letter to Finance Secretary Derek Mackay, calling on the Scottish Government to reverse its decision to double a tax supplement affecting large firms.
Urging the minister to create a level playing-field with England, they said it would help “hard-pressed businesses” at a time of economic uncertainty.
The extra supplement levied on larger firms doubled in Scotland from 1.3p in the pound to 2.6p earlier this year but remained the same south of the border.
Ms Medcraf said: “Many of our firms here in Moray refrain from investing further in their businesses due to the cost of business rates.
“This increase will only add to this and restrict growth, hindering the economy and impacting on jobs”.
Groups pressing Holyrood to consider a U-turn include CBI Scotland, the British Aggregates Association, Scottish Engineering, Scottish Chambers of Commerce, Scottish Grocers’ Federation, Scottish Tourism Alliance, Scotch Whisky Association, Scottish Retail Consortium, Scottish Council for Development and Industry, Scottish Property Federation, Scottish Food and Drink Federation, Institute of Directors Scotland and British Hospitality Association Scotland.
They want Mr Mackay to make the change in his first budget, due to be presented to the Scottish Parliament later this year.
Their letter said: “This supplement affects one out of every eight commercial premises in Scotland and is expected to add a further £62million to these businesses’ rates bills in the current year.
“Reducing the surcharge to the level which applies in England would not only be fair and make Scotland’s business rates more competitive, but would also help to reduce the cost base of many hard-pressed businesses at this time of economic uncertainty.
“A reduction in the large business supplement back to 1.3p would go a long way to levelling the business rates playing field across the United Kingdom.”
A review of Scottish business rates is currently under way and expected to be completed by summer 2017.
A Scottish Government spokeswoman said: “The Scottish Government is determined to maintain competitive business rates and our small business bonus has already delivered over £1billion in savings for smaller firms.
“Finance Secretary Derek Mackay will also meet business representatives to discuss economic recovery further.
“However, our efforts risk being undermined by the UK Government’s austerity policies and the current lack of action seen since the EU referendum.”
