Aberdeen City Council will shell out more than £1million extra on business rates this year following a controversial revaluation.
The new bills, some with increases of up 250%, provoked fury across the north-east when first revealed in April many feeling unfairly penalised as the rateable value (RV) was based on 2015 property values before the full effects of the oil and gas downturn were felt.
Finance Secretary Derek Mackay belatedly came forward with relief packages after the outcry and so have both Aberdeen and Aberdeenshire councils.
Now it has emerged that the city council are facing a rates bill of £11,231,026 this year- up from £11,231,026 the previous year.
Around 29% of businesses have appealed their revaluation across the country, which if paid out would total £5billion.
The city council have appealed 770 of their charges.
Council co-leader Douglas Lumsden said the “missing million” could be ploughed back into council services at a time when the authority faces making £125million in cuts over the next five years.
He said: “What this means for the people of Aberdeen is that £1million pounds going on rates is one million less that we can invest in the services that they rely on.
“So far Derek Mackay has come up with a series of temporary fixes for the business rates issue.
“While the Barclay Review did come up with some sensible suggestions to reform the system it was hamstrung from the start by being told its recommendations had to be revenue neutral.
“It is clear that we need longer-term solutions to ensure that Scottish businesses are not put at a competitive disadvantage within the UK.”
A Scottish Government spokesman said:“Each local authority, including Aberdeen City Council, retains every penny of business rates income collected in its area. Aberdeen City Council also has wide ranging powers to create local rates relief schemes to support local businesses.
“The Scottish Government has committed to around £660 million of rates relief this year, including targeted measures for businesses in Aberdeen City and Shire –measures that will continue next year.”
