The dire number of vacancies on Aberdeen’s Granite Mile has sparked renewed demands for businesses in the city to be given a major tax discount.
New figures show 96 properties on Union Street have sat empty at some point during this financial year so far, including 64 offices and 26 shops.
Firms who open on the city’s busiest street have already been told they will be exempt from business taxes for at least two years in a blueprint to increase investment.
The plans were drawn up by Our Union Street, a new group launched earlier this year with the aim of regenerating the city centre.
But Aberdeen-based Tory MSP Douglas Lumsden wants existing businesses to be given further incentives to stay in the north-east.
The former Conservative council chief believes all firms on Union Street should not have to pay non-domestic business rates.
The tax, which is devolved, charges companies based on the value of property they own.
Mr Lumsden insists making the city high street a “rates-free zone” would help business owners who are in “dire straits” due to their current taxes.
But the city’s current administration, led by the SNP and Lib Dems, disputes this and argues extensive support has already been given.
And the Scottish Government says the Union Street taskforce has been given £400,000 to help bring some life back into the city centre.
‘Downward spiral’
Mr Lumsden said: “These devastating figures underline the downward spiral of Union Street in recent years, but we must reverse the tide of decline.
“The Scottish Government’s rates system is killing our high streets in Aberdeen and is punishing the north-east disproportionately.
“Businesses across Scotland should be treated equally but in Aberdeen they are not, with a bias towards the Central Belt.
“Owners who are in dire straits are being left with no choice but to knock down their buildings because of the punitive effect of business rates on the city.”
Councillor Alex McLellan, the city’s SNP finance convenor, warned Mr Lumsden’s proposals would give major handouts to hugely profitable firms.
He said: “What’s being proposed here, just for Union Street alone, would give millions of pounds a year in tax-breaks to huge multinational companies.
“This proposal actually lists companies that are worth billions of pounds, that would be subsidised by his plans.
“We are already investing in Union Street, with half a million pounds being made available in empty shop grants and millions being on the table for regeneration projects.”
We reported earlier this year that firms who take on empty units in the city centre are eligible for handouts of up to £35,000.
Businessman Bob Keiller, who runs Our Union Street, insisted the support package was one of the best on offer across the UK.
A Scottish Government spokesperson said: “Earlier this year the First Minister announced £400,000 to support the Our Union Street initiative with the express aim of rejuvenating Aberdeen’s main street.
“The Scottish Government is also acutely aware of businesses’ calls for support with non-domestic rates.
“As a result, the 2024-25 Scottish Budget proposes freezing the poundage, delivering the lowest poundage rate in the UK for the sixth year in a row.”
