A plea for tax breaks after retail blows from M&S and Haigs food hall in Aberdeen has been rejected by the Scottish Government.
The SNP economy chief, Neil Gray, turned down the call to match England’s 75% rates relief for business after questions on how to keep businesses competitive.
Mr Gray said the M&S decision to leave the flagship St Nicholas Street building and expand at Union Square had nothing to do with the lack of extra tax breaks.
‘Signal of intent’
“Marks and Spencer’s decision to close its Union Street store but invest £15 million in doubling its space at Union Square is a signal of intent and of confidence in the market in Aberdeen,” he said in Holyrood on Thursday.
“My understanding is that the decision will have no bearing on redundancies.
“I do not believe that the issue of non-domestic rates had any impact on M&S’s decision to provide substantial investment.”
Mr Gray said passing on rates relief to hospitality, leisure and retail businesses would leave no further room to invest in public services.
It comes two weeks after local business owners asked for more support during a visit by SNP minister Mairi Gougeon to the city.
She was there to announce funding to expand Aberdeen Restaurant Week, which runs from January 22 to February 4.
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At the time, Findlay Leask, managing director of Aberdeen coffee supplier Caber Coffee, told Ms Gougeon that if rates support is not offered, new businesses won’t be attracted to move in to the city.
On Thursday, North East MSP Liam Kerr raised the request with the government.
‘Dire straits’
After it was turned down, Mr Kerr added: “This shameful admission from the Scottish Government has the potential to kill off dozens of businesses who have been left in dire straits by their punitive rates regime.
“The current system imposed in Scotland is destroying Union Street yet SNP ministers are all too happy to brush the issue under the carpet to the detriment of our city centre.”
The M&S decision leaves a big vacancy in a key location.
Union Street and the surrounding streets have already lost Frasers, NHS, Debenhams, John Lewis and others.
However, M&S says there will be no job losses and staff can probably move to an extended store in Union Square, a shopping centre opened in 2009 despite years of head-scratching about how to improve Union Street and retain big names.
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