The north of Scotland has just experienced an icy blast from the east, and I’m not just talking about the sub-zero winds circulating in from Siberia. Following a freeze on Scottish business rates for the last five years, Nicola Sturgeon’s government has initiated a thaw.
We’ve all received letters telling us that rates are set to increase and by how much. Business rates have been a political talking point for some time particularly amongst business owners. We knew there would be a change, but the sudden and steep rises have come as a shock to the system. I know owners and leaseholders of many business premises who have already hit back to Holyrood with strongly worded letters, and many will officially appeal their rates too. Some have seen 100% rises and these are daunting numbers to face in a tough climate.
Across the Highlands and our home base of Inverness to Buchan and Aberdeen and down to Montrose, we have plenty of resources that can contribute to Scotland’s economy. In agriculture, fishing, logistics, oil and gas, power generation and tourism we sustain thousands of jobs with people plying their professional skills and trades in tricky conditions.
As I travel from place to place, I try to make use of independent business services as much as possible – this is on what I consider to be a lose it or lose it basis. The local shop, hotel or petrol station are often families’ livelihoods and we should support these. A survey by the Federation of Small Businesses this month highlighted that several Scottish rural locations were classed as self-employment hotspots. Ullapool and Newtonmore in the Highlands and Cullen on the north Aberdeenshire coast were all within the top 10 out of 500 towns, cities and suburbs. But, when the new rates hit home in April how will these entrepreneurial businesses fare? Only time and will tell.
Even the largest of businesses rely on the services of SMEs and I would call on careful consideration on a case by case basis when these owners make their appeals to the Scottish Government. Recruitment plans will be affected with the difference in rates potentially being a year’s salary for a staff member.
As we head into spring, we are hoping for an improved business environment in many sectors, but I still see a long road ahead. The Scottish Budget has not inspired confidence. The minority government has had to learn the act of negotiation, passing its plans with the backing of the Green Party. I would advise all smaller businesses to read the small print to find out if they are eligible for the Small Business Bonus Scheme, which Scottish Finance Secretary, Derek Mackay says will lift 100,000 businesses out of paying rates. Larger businesses may also benefit from relief by no longer having to pay the Large Business Supplement on their business properties.
Need we remind government that the Scottish oil and gas industry is still finding its feet. It has been affected by a downturn, global competition and of course Brexit. The latter creating uncertainty politically and in the currency markets. There are signs that the winds are beginning to change for an industry we know is strong but not invincible.
Many of the positives come from the actions of leadership teams which have done their best to alleviate the strain on their businesses. We know this has resulted in unprecedented numbers of people facing redundancies, offloading of business departments and in some cases closures. This has been difficult and has required strong leadership. Those which have survived say they are leaner, more focused and ready to go again. Resilience is a word which has often been used.
I see resilience across the markets Orion Group is currently working. There has never been anything straight-forward about industries including energy, rail and construction. Each has faced their own challenges over the years. Even IT is an intense market where everyone involved must be highly market aware. Our specialists understand the pressures facing our clients in these sectors and are sensitive to their requirements.
The north of Scotland has the people skills and slowly but surely the infrastructure to ensure Scotland remains prosperous. I’m proud to be part of a region that works with what it has and thinks big. Despite the negativity surrounding our government, it’s pleasing to see roads of national importance being constructed here. The Scottish Government also continues to back our rail links and lifeline air routes within rural areas. Crucially, it has approved plans to enhance ports around the country to better serve heavy industries, trade and leisure. As businesses it is up to us to use these resources, both locally and nationally, and continue to improve as we always have done.
One man who strived for improvement was Gordon Aikman, who sadly passed away this month aged 31, following a motor neurone disease diagnosis more than two years ago. Over that time, he used his political background and connections to selflessly work towards improving MND care for his fellow patients.
Through fund-raising and events he put pressure on government to back a practical five point plan he devised. It resulted in First Minister Nicola Sturgeon agreeing to a review of MND care in Scotland and pledging to fund double the number of specialist nurses. He won support of people across the country and collected two Scottish Politician of the Year Awards in the process, as he refused to allow his disease to take over his life.
I was pleased to meet Gordon during his campaign and provide our own support to MND Scotland’s charity and research into this disease. It is a cause we will continue to back.
