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Almost 20,000 north and north-east firms will not benefit from Government’s business rates relief

Former Finance Secretary Derek Mackay
Former Finance Secretary Derek Mackay

Almost 20,000 north and north-east firms will not benefit from Scottish Government measures to soften the blow of crippling business rate rises, Conservatives claim.

Finance Secretary Derek Mackay unveiled a package of much-needed relief on Tuesday, including a 12.5% cap on rises for the hospitality industry.

The same limit was also put in place for office space in Aberdeen and Aberdeenshire, to help soften the blow of the oil downturn.

The widely-welcomed announcement came after warnings jobs would be lost and livelihoods fold and a sustained campaign of opposition.

However a total of 8,051 businesses across Aberdeen and Aberdeenshire will see no reduction in the significant rate increases due in April.

Thousands more across the region will also get no assistance.

Sectors which will still be fully affected by the changes include manufacturing, warehouses and NHS hospitals.

The boss of Huntly-based shortbread maker Deans questioned how it was fair that some were deemed “more deserving” than others.

Compared to other cities in Scotland, Aberdeen will take the brunt of the rises, with 62% of all businesses in the Granite City paying higher rates – compared with 27% in Glasgow and 38% in Edinburgh.

Liam Kerr, Scottish Conservative MSP for the North East region, said: “While we welcomed the measures announced by Derek Mackay, particularly for the hospitality sector and offices in the Aberdeen area, we made the point yesterday that thousands won’t see any benefit.

“These figures illustrate the depth of the problem, with many companies in manufacturing, retail and also our nurseries, universities and NHS hospitals still facing steep rises.

“It is important that anyone who feels their bill is excessive or was miscalculated due to changes in the north-east economy since 2015 seeks advice and considers an appeal.

“We could find ourselves back in the very same position this time next year.

“There is now a lot riding on the Ken Barclay review of the business rates system, which reports back to government later this year.

“I know many companies will be looking for a complete overhaul of the way in which businesses are taxed.”

Dean’s Shortbread in Huntly, which was first established in 1975, is one of the many independent manufacturers across the north-east that will bear the full brunt of the increases.

Managing director Bill Dean said his rates are still set to rise around 30%.

Mr Dean said: “We’re still to get the actual figures through the letterbox, but that’s the indication we’ve been given – it’s a very chunky number.

“There’s enough on everyone’s plate with the uncertainty of Brexit, there’s crazy things happening with the pricing of commodities because of the pound being very weak just now, labour costs are going up significantly and more.

“This is just more on our plate. Do we really need it at this moment in time? The honest answer is no, but what are our options? It seems to me that we’ll have to see businesses suffer, or some businesses unfortunately collapse, before they address things more properly.

“It is very disappointing.”

Mr Dean said that although he was pleased to see relief offered to hospitality and office-based businesses, he would have preferred a more equal approach.

He added: “How can you say that one sector is more deserving than others when it comes to support, when we’re all in the same boat?

“There’s been a huge knock on effect in terms of trading for everyone in the north-east due to the oil downturn.

“And businesses such as our own are not exempt from that.

“But costs are coming at us from all different angles, and we can’t take them all, it’s impossible.

“What we’re looking for is a period of stability. There’s just so much uncertainty with the pound, Brexit, there’s so much going on just now – why throw more petrol on the fire at this time?

“Businesses are an easy target.

“One business, one vote – it makes political sense to attack them, rather than upset the man and women on the street.”