Derek Mackay has announced more than £17million for north-east councils to tackle the business rates bombshell – but opposition politicians dismissed the move as “smoke and mirrors”.
In an 11th hour climbdown, the SNP finance secretary announced the extra cash which he hopes will help local authorities provide relief to firms facing crippling rates rises.
The Press and Journal has led a campaign against the revaluations, which would mean firms facing increases of as much as 200%.
Mr Mackay met furious business leaders in Aberdeen last week, but ruled out government intervention to help firms, pledging instead to work with local councils to provide relief.
But, after a backroom deal with the Scottish Greens, Mr Mackay has made available £17.5million for the Granite City, Aberdeenshire and Angus, which he hopes will allow the three local authorities to help companies.
A spokesman for the Scottish Conservatives accused Mr Mackay of “giving with one hand while taking away with the other” – given cuts totalling £46million had already been announced for Aberdeen and Aberdeenshire.
But Aberdeenshire East MSP Gillian Martin said: “We’re completing the Aberdeen Western Peripheral Route, investing £900million in our health services, building a new Inverurie health centre and giving head teachers cash to drive up standards in our schools.
“On top of that, north-east councils are getting a further £17.5million to spend as they see fit.
“Speaking to local businesses over recent weeks, I’ve heard their concerns about rates revaluations.
“The power to do something about that now lies squarely with local councils.
“It’s time for all of us to set politics aside and use the extra cash coming to the region to deliver rates relief for businesses, attract investment to the area, grow our economy and create jobs.”
Under Mr Mackay’s new proposals, Aberdeen City Council will get £4.5million in extra revenue spending, Aberdeenshire will get £6.3million and Angus will get £2.8million.
But city council leader Jenny Laing said: “Whilst we welcome the announcement of additional revenue grant, Aberdeen is still the lowest funded council in Scotland and the challenges around protecting front line services remain.
“The additional money has been allocated using the usual formula and therefore we are disappointed that the cabinet secretary has chosen not to consider Aberdeen as a special case for additional funding given the difficulties many Aberdeen businesses face as a result of the huge increase in business rates.”
A Scottish Conservative party spokesman said: “This is nothing more than smoke and mirrors from the SNP and people in the north-east will not be fooled by it.
“Aberdeen City Council is being forced to make cuts of £22million to balance the books this year, while Aberdeenshire Council is proposing cuts of £24million.
“This is squarely down to a reduction in revenue grant funding from the SNP government.
“The finance secretary is simply giving with one hand while taking away with the other.
“The reality is that this ‘extra’ cash won’t even cover the shortfall, and still leaves Aberdeen as the lowest funded council in Scotland and Aberdeenshire the third lowest.”
