A partner at north-east property giant has called for “urgent” action on business rates warning that companies could go to the wall.
Eric Shearer, of Knight Frank, has written to the Scottish Government calling for a meeting with finance secretary Derek Mackay and asking for a 12.5% cap on all rises for businesses across the north-east for two years.
Mr Shearer said that the region was going through “exceptional circumstances” due to the downturn in the oil and gas industry.
His letter reads: “Much more needs to be done and the best starting point is honest engagement with the communities and businesses you serve.
“My formal request to you is to bring in a 12.5% cap to all NDR bills for the north-east for at least 2 years or until the Barclay report is completed and changes made. Can you please consider this request urgently and could we arrange to meet again with the Finance Minister to agree how this can be delivered in partnership with the local authorities.”
The rates increases have proved controversial across the north and north-east, with many traders facing rises of up to 250% – prompting warnings of job losses and closures.
In February, Mr Mackay bowed to weeks of pressure and announced a national relief package including a 12.5% cap on increases in the hospitality sector, and measures for offices in the city and Aberdeenshire.
Mr Shearer said his business was currently making no profit and he raised concerns that other businesses could even go under due to the massive rises.
He said: “A 12.5% is still huge but at least companies could cope better than a rise of over 50%.
“I used to be an SNP voter but I don’t think I would do so again. Mr Mackay has put me off.”
A Scottish Government spokesman said: “The Scottish Government announced a competitive business rates package in its draft budget in December, and following stakeholder engagement once the assessors’ provisional revaluations were available acted to target further support where it is most needed, including particular support in Aberdeen city and shire.
“Scottish councils each retain all the rates they collect, and have benefited from an increase in overall support for services in 2017-18 of £383million or 3.7%. We have already committed to £660million of rates relief this year, with local councils able to further reduce rates as they choose, and we welcome Aberdeenshire Council’s decision to do so.”
