The owner of a renowned north-east shop has revealed plans to create 30 jobs as part of a £2million expansion are in jeopardy if his business rates go up again.
Spotty Bag Shop owner Des Cheyne officially reopened the Banff budget store yesterday after the revamp, which included building a new floor for a coffee shop.
When he announced the project last year, he said it would create 30 jobs.
But so far, he has only been able to take on 18 – and admitted last night the remaining 12 posts were in jeopardy pending the reassessment of his business rates now he has a bigger space.
Mr Cheyne said the business rates assessor has already visited, and that he is now expecting his rates to rise a second for a second time this year.
The shop’s rates rose by 15% in April as part of a controversial increase across the country. The Spotty Bag Shop is one of the biggest employers in the town.
Mr Cheyne said the decision to invest, despite uncertainty over rates, was done in the interests of the area.
“There has not been much to shout about in Banff, in terms of the economy, recently but as someone who is proud to have been born and raised here I feel it is incumbent on local businessmen like me to invest in the people and the area if at all possible,” he said.
“It is a substantial investment but one I believe which will bring great benefits to the area and the local people.
“But it is difficult to invest in the area. We’re questioning whether they want to regenerate the town after all. Why would someone invest when they’re then getting penalised by rates?”
In total the refurbishment has created 18 new jobs – bringing the store’s total number of staff to 70.
Mr Cheyne added his investment would give other entrepreneurs on the Banffshire coast the impetus to do the same and help the town “out of the doldrums”.
The re-launch of the Spotty Bag Shop comes as more than a third of north-east businesses say they will have to cut staff numbers as spiralling business rates bills begin to bite.
The stark figures were revealed in a survey of 169 firms carried out by Aberdeen and Grampian Chamber of Commerce.
Banff councillor John Cox praised Mr Cheyne for making a “major investment” in the town.
However he agreed the store is being “penalised” for success.
“This is having a major impact at a time we’re trying to regenerate the north-east,” he added.
“The assessor is looking over the shoulder of businesses which are investing, ready to take their cut.”
A spokesman for the Scottish Government said the revaluation was the first carried out in seven years and is conducted by independent assessors. Firms have until September to appeal.
He added: “We are delivering around £660million of business rates relief this year, including an extra £9.8million specifically for Aberdeen and Aberdeenshire. We have expanded the Small Business Bonus Scheme which has already saved business around £1.3billion in total, so that it lifts 100,000 properties out of rates, reduced the rates poundage and limited application of the large business supplement.
“That means that overall, seven out of 10 businesses are paying the same or less rates than they did last year.”
