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North-east SNP branch complain about rising room charges… At hotel struck by party’s business rates increase

At FMQs, Nicola Sturgeon urged the hotel to appeal its valuation
At FMQs, Nicola Sturgeon urged the hotel to appeal its valuation

Ruth Davidson has lampooned Nicola Sturgeon after a north-east SNP branch complained about rising room hire charges at a hotel affected by the business rates increases.

Party activists said they had been priced out of using the Banff Springs Hotel for constituency meetings.

But the four-star establishment, which the SNP Banff and Macduff branch had been using since the 1970s, said it had to pass on the cost of a £50,000 increase in its rates – or go bust.

Tory leader Ms Davidson raised the case at First Minister’s Questions yesterday, saying she hoped an “embarrassed” Ms Sturgeon would “do something about” the increases.

Ms Sturgeon said Scotland had “the most competitive business rates regime in the whole UK”.

But Ms Davidson said: “Even the SNP’s own branches are opposing the hike in business rates, so perhaps it’s time for Nicola Sturgeon to listen.

“These unfair increases, which see businesses like the Banff Springs Hotel paying more than double their current rates, could force closures and job losses.

“The SNP won’t listen to reason or hard evidence, so perhaps it will take notice now it’s been embarrassed in the Scottish Parliament.

“If the first minister’s own party doesn’t support this policy, surely even she recognises it’s time to do something about it.”

An e-mail sent from the Banff and Macduff SNP branch branded the rise in room hire at the hotel – from £30 to £80 to cover the business rates rise – “excessive”.

It adds: “Should this fee of £80 apply to future meetings I can confirm there will be no further bookings and our business will be taken elsewhere.”

Ms Sturgeon urged the hotel to appeal its valuation.

She said: “Ruth Davidson is talking about an independent revaluation of business rates.

“The final valuations will be issued later this year and all businesses will have the opportunity to appeal if they think that their valuation is wrong.

“We have the most competitive business rates regime in the whole UK, with 100,000 small businesses having been lifted out of business rates altogether.”

Speaking after the session, Peter Chapman, north-east Scottish Conservative MSP said: “This is a huge embarrassment for the SNP, but it also illustrates a very serious point about the impact that these punitive rates rises will have on local firms.

“If the SNP branch in Banff and Macduff won’t pay higher rates – why should they expect local businesses to do the same?”