Aberdeen’s SNP group has announced they will back a £4million pound business rates relief package at next week’s budget meeting.
Firms across the Granite City are facing a rise of around £100million in their bills after controversial changes to the Rateable Value (RV) of properties.
Under the plans, the group will put forward proposals to provide at least 50% relief for all increases above 20% in the hospitality sector.
The support will mean at least 25% relief for all increases above 20% in the oil and gas sector and the shop sector.
In total, more than 1,000 businesses would benefit.
The plan is one of a number of options put to councillors including a massive £26million package.
SNP group leader Stephen Flynn said: “Businesses in Aberdeen have rightly called for support due to the fall in the local economy since the 2015 rate revaluation and now councillors must act – the SNP will be seeking to provide over £4million of support to over 1,000 businesses in the hospitality, oil and gas, and shop sectors.
“Our hotels, shops, pubs and restaurants have borne the brunt of the oil downturn and it’s absolutely essential that the council uses the powers at its disposal through the Community Empowerment Act to help to protect the future of these businesses and the thousands of staff they employ.
“Councils, including Aberdeen, have rightly called for further powers to influence the direction of their local areas – we now have those powers, and the funds available to protect our businesses – now is the time to act.”
Eric McMillian, the owner of the city’s Underground and Unit 51 nightclubs, said that many businesses were “just holding on”.
He said: “We are looking at going from £19,000 to £53,000- a 260% increase.
“We have 52 employees, if no relief comes, I’ll have to get rid of staff or raise prices.
“We need some form of relief or I think many more businesses could go.”
A Scottish Government spokeswoman responded: “Our package of measures delivers a tax cut of £155million, which will help those who might be impacted by a revaluation.
“It will also mean that, from April 1, more than half of businesses will pay no rates, seven out of ten will pay either no or less rates than they do currently, and the total package of reliefs we are offering will increase to more than £600million.
“The first step open to all those businesses who are concerned is to contact the assessor and discuss how they worked out the provisional value.
Final valuations will be published in March and businesses have until September to appeal. That process is entirely independent and we would encourage firms take up those opportunities.”
