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Business rates relief plea letter goes unanswered for a month

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The Scottish Government has been accused of leaving businesses “in the dark” by failing to answer a call for £3million to fund business rates relief.

Aberdeen City Council’s finance committee backed a plan where the local authority would put forward £3million to cushion the blow of steep rises – if Holyrood matched the contribution.

But since that decision on March 9, there has been no reply from Scotland’s finance secretary Derek Mackay.

The opposition SNP group has committed in its local election manifesto to a £4million package – totally funded by the council.

In neighbouring Aberdeenshire, the local authority announced relief worth nearly £3million for firms hit by rises in business rates this year.

This came after Mr Mackay backed down to growing pressure and announced a national relief package in February for the worst-hit sectors.

Aberdeen finance convener Willie Young said: “We have a great opportunity to here to work together for the benefit of businesses but we can only do so if the Scottish Government pitches in and helps.

“We are the lowest-funded council in Scotland. We need this help from Holyrood and yet our letter remains unanswered.

“This is increasing uncertainty for businesses.”

The Liberal Democrat group supported the match-funding plan put forward last month.

Group leader Ian Yuill said: “I think the Scottish Government owes it to Aberdeen’s business people to respond to the council quickly and it is very disappointing it hasn’t done so yet.

“Our view is that if they don’t agree to match funding, then the council must quickly move forward with its own scheme.

“This issue is too important for silly political games.”

But SNP group leader Stephen Flynn said its £4million relief package had been rejected twice by the Labour-led administration.

He said: “This is a fundamental issue and will be one of our main priorities immediately if we win power.

“The time for talking is finished and there must be a solution brought forward. ”

A Scottish Government spokesman said they would “respond in due course”.

He said: “The Scottish Government has committed to £660 million of business rates relief this year, including an additional £7.5 million relief recently announced for Aberdeen.

“This is alongside an additional £130 million resource for local government also announced recently, including an additional £4.5 million for Aberdeen City Council. We will respond to Aberdeen City Council in due course.”