A £3million help scheme for Aberdeen firms, hit by huge business rate rises, is finally going ahead after a U-turn by councillors.
The city council drew up the relief package in March – but refused to pay out unless the Scottish Government matched that sum.
However, the newly-installed administration – in which Conservatives now outnumber Labour – has agreed to press ahead regardless.
‘We will defend north-east entrepreneurs in ongoing business rates row’ says new administration
Tory leader Douglas Lumsden, who has taken the finance convener brief, said the authority wanted to send a “clear message” to local firms.
He met with the authority’s finance director Steve Whyte yesterday to start work on the detail of which firms will benefit by how much.
It is expected the focus will be on sectors other than hospitality and offices which were already granted a cap on rises by under-fire ministers.
The Government has consistently refused to offer any further support than the existing reliefs and exemptions for small businesses.
Mr Lumsden said: “Support for businesses hit by rising rates was a red line issue for us in coalition talks.
“We are 100% committed to helping those affected.
“Negotiations on the policy direction of the new administration are ongoing. However, we want to send a clear message to the business community that we are ready to take action to alleviate the burden.”
James Bream, research and policy director at Aberdeen & Grampian Chamber of Commerce, welcomed the news.
He said: “While it isn’t enough to solve the problem for everyone, we are pleased that the needs of the business community have been heard.
“Our focus now moves to working constructively with the government via the Barclay Review to address the fundamental flaws in the system.”
Aberdeenshire Council has already implemented a £3million scheme.
Council leader Jenny Laing, one of nine councillors suspended by the Labour Party for forming the coalition with the Conservatives, said she had “consistently highlighted the plight” of affected businesses.
The SNP, kept out of power by the pro-Union alliance, despite winning most seats in the May 4 election, responded that the “long overdue and dramatic U-turn” did not go far enough.
Opposition leader Stephen Flynn said: “We have proposed a £4million package, which is fully costed and ready.
“Should the Tories move for £3million, we will propose £4million and hope we would get their support on that.”
