An Aberdeen hotelier has said he is considering paying no business rates at all until a review is carried out.
Colin Finnie, who owns the city’s Great Northern Hotel, said the rises on his property would put him “in the red”.
Hotelier Stewart Spence hit the headlines in February this year after he called for a nationwide boycott of new business rates and vowed to refuse to pay any increases.
How spiralling business rate bills are really impacting the north-east
The Great Northern Hotel, which is listed, employs 38 staff and has suffered a rise in its rateable value of around £60,000 while turnover is down by around 50% from last year, according to Mr Finnie.
The rises in RV, with some firms facing huge increases of up to 250%, have proved particularly contentious in the north-east because they are based on 2015 property values.
The Scottish Government offered targeted support in February to certain sectors while both Aberdeen and Aberdeenshire councils have put relief packages in place.
But there have been fears raised these will prove to be “sticking plasters” with firms facing large rises again next year.
The Barclay Reivew has been commissioned to investigate and make recommendations on the business rates system in the future.
The conclusions of the review are due before ministers next month.
Mr Finnie said: “Business is tough just now and there are more hotels in the pipeline.
“Business rates is a tax but it is an unfair tax because it only takes into account turnover and the size of the building, not how profitable it is.
“Ten years ago our rates were £50,000 and that was when Aberdeen was on the crest of a wave.
“Now I’m considering stopping paying rates altogether. I have been to court in the past and it isn’t something I relish but I want the Scottish Government to see what they are doing to businesses like mine.”
Council finance convener Douglas Lumsden said: “Time and time again we’ve seen calls from across the business sector for the Scottish Government to both respond quickly and to take into account the unique position of the north- east.”
A Scottish Government spokesman said that the Barclay review remit is focused on recommending future reforms and will have no impact on rates bills in the current financial year.
He added: “The Scottish Government has committed to around £660 million of business rates relief this year, including capped increases within the hospitality sector and additional targeted support for businesses in Aberdeen and Aberdeenshire.
“We anticipate the Barclay Review will report in August and Ministers have committed to act swiftly on the recommendations.”
