Opponents last night claimed the Barclay review does not go far enough to support the hospitality and retail industry.
The Scottish Government doubled the large business rates supplement last year, leaving at least 5,000 Scottish retailers stumping up £12million more in rates each year than competitors or counterparts down south.
The review has recommended the “damaging” Scotland-only surcharge is brought to an end, but has suggested replacing it by allowing councils to bring in a charge on out of town and online businesses.
Scottish Retail Consortium director David Lonsdale welcomed the recommendation to scrap the rates but said its replacement would be “wrong-headed”.
He said: “Conjuring up a new online-only or out-of-town-only levy isn’t the answer to the exorbitant cost of business rates faced by shopkeepers or other firms located on our high streets.
“We remain concerned the overall rates burden will remain onerous, at a time when Scottish firms are already having to grapple with a growing cumulative burden of government-imposed costs including the new apprenticeship levy and higher statutory employer’ pension contributions.”
Moray MP Douglas Ross, Conservative, said the review was just “tinkering around the edges” and did not offer long-term assurances for local businesses in Moray.
He said: “If our bars, restaurants, cafes and other hospitality providers are hit with the same increases suggested last year, it would almost certainly mean the closure of some of these excellent local businesses and result in job losses.
“We have to ensure that does not happen and the Scottish Government have to explain how they will deal with this issue.”
Scottish Labour’s economy spokeswoman Jackie Baillie MSP said there should be a “fundamental overhaul”.
Liberal Democrat economy spokeswoman Carolyn Caddick added: “Hotels and pubs have been hammered by the last two reviews and it’s disappointing the Barclay Review does not recommend giving businesses protection from the gigantic rate increases that some of them have faced this year.”
Aberdeenshire East MSP Gillian Martin, SNP, called for more to be done to protect retailers in towns from the boom in online shopping and backed the review recommendations.
She said: “We should be doing all we can to make sure these businesses are able to remain competitive. I thoroughly support these recommendations, which will go towards sustaining the longevity of businesses in our town centres.”
