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Business rates system branded “not fit for purpose”

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The Scottish business rates system has been branded “not fit for purpose” as MSPs met to debate the issue in Holyrood.

North-east Conservative MSP Ross Thomson brought the debate before the chamber to discuss the long-running issue.

Last month finance secretary Derek Mackay bowed to weeks of pressure from business leaders and politicians and announced a national relief package including a 12.5% cap on any increases in the hospitality sector and special measures for offices in the city and shire.

But this was dismissed as a “sticking plaster” by many north-east businesses as the relief will only last for one year.

Mr Thomson said: “It is crystal clear to everyone, in the north- east especially, that a fundamental re-examination of the whole business rates system is essential, and I hope that the recommendations of the Barclay Review provide much needed respite for businesses.”

Labour MSP Lewis Macdonald said: “Businesses need urgent action from the Scottish Government not excuses.”

But SNP Aberdeenshire East MSP, Gillian Martin, said: “While both myself and my colleagues have been meeting with small businesses, and discussing the changes with firms and advising them the Tories have been using it as a photo opportunity instead while failing to vote when it matters, to offer any real support.

“The Small Business Bonus Scheme has already saved businesses more than £1bn across Scotland and will be expanded from April to lift 100,000 businesses out of rates completely.”

Last night Graham Mogford, who owns the owns the Bridges Nurseries in Westhill and Bridge of Don and faces an increase in the rateable value on each of his properties of more than 50% from April 1.

He said: “We are having to put our prices up by 4.5% but that won’t cover it so we may need to review again later in the year.

“The current system just isn’t fit for purpose.”

 

Aberdeen City Council put forwards a £3million rates relief package in their budget this year which will only become active if the Scottish Government match funds it.

Last night council sources said they were yet to receive a reply from Holyrood meaning the bills will now be delayed until later in April.

A Scottish Government spokesman said: “We will respond to Aberdeen City Council in due course.”