M&S welcomes lower rates for Aberdeen city centre store

High street retail giant Marks & Spencer (M&S) has given a thumbs up to business rates being slashed at its flagship store in Aberdeen.

M&S is among Granite City property owners expecting a big fall in their rates bills next year.

Its shop on St Nicholas Street – the anchor store for Bon Accord shopping centre – is likely to see its rates slashed by around 51%, from around £523,000 to about £254,000 annually.

The empty John Lewis department store in Aberdeen is also in line for a hefty cut of more than 57%, saving its owner – who called time on the site during 2021 – nearly £250,000 a year.

A spokeswoman for M&S said: “Any reductions to business rates that bring them down more in line with the correct rental value of our store are welcome.”

M&S currently operates two large shops in the centre of Aberdeen, the full-line store on St Nicholas Street, and a food and homeware shop in Union Square shopping centre.

What’s the future for Marks & Spencer in Aberdeen?

The retailer has embarked on a programme of store closures around the UK, raising fears over the future of its shops in Aberdeen, as well as a branch in Eastgate shopping centre in Inverness.

Business rate revaluation will be a mixed bag for Aberdeen

Draft figures for an upcoming business rates revaluation show a mixed bag for businesses in and around Aberdeen city centre.

While M&S, John Lewis and many office properties will end up paying less, others are not so lucky and will see bigger bills landing on their doorsteps.

Lorna Greig, who leads the rates team in Aberdeen for property firm Ryden, has said the severe impact of a previous revaluation in 2017 – leaving many businesses with much bigger bills – means those benefitting this time are simply gaining from a “readjustment” of the system.

The poundage rate used to calculate the bills that will land on firms’ doorsteps in the next tax year is expected to be announced in the Scottish Budget on December 15.

Currently, 49.8p is charged for every pound of rateable value.

Final rateable values will be published on April 1.