Calendar An icon of a desk calendar. Cancel An icon of a circle with a diagonal line across. Caret An icon of a block arrow pointing to the right. Email An icon of a paper envelope. Facebook An icon of the Facebook "f" mark. Google An icon of the Google "G" mark. Linked In An icon of the Linked In "in" mark. Logout An icon representing logout. Profile An icon that resembles human head and shoulders. Telephone An icon of a traditional telephone receiver. Tick An icon of a tick mark. Is Public An icon of a human eye and eyelashes. Is Not Public An icon of a human eye and eyelashes with a diagonal line through it. Pause Icon A two-lined pause icon for stopping interactions. Quote Mark A opening quote mark. Quote Mark A closing quote mark. Arrow An icon of an arrow. Folder An icon of a paper folder. Breaking An icon of an exclamation mark on a circular background. Camera An icon of a digital camera. Caret An icon of a caret arrow. Clock An icon of a clock face. Close An icon of the an X shape. Close Icon An icon used to represent where to interact to collapse or dismiss a component Comment An icon of a speech bubble. Comments An icon of a speech bubble, denoting user comments. Comments An icon of a speech bubble, denoting user comments. Ellipsis An icon of 3 horizontal dots. Envelope An icon of a paper envelope. Facebook An icon of a facebook f logo. Camera An icon of a digital camera. Home An icon of a house. Instagram An icon of the Instagram logo. LinkedIn An icon of the LinkedIn logo. Magnifying Glass An icon of a magnifying glass. Search Icon A magnifying glass icon that is used to represent the function of searching. Menu An icon of 3 horizontal lines. Hamburger Menu Icon An icon used to represent a collapsed menu. Next An icon of an arrow pointing to the right. Notice An explanation mark centred inside a circle. Previous An icon of an arrow pointing to the left. Rating An icon of a star. Tag An icon of a tag. Twitter An icon of the Twitter logo. Video Camera An icon of a video camera shape. Speech Bubble Icon A icon displaying a speech bubble WhatsApp An icon of the WhatsApp logo. Information An icon of an information logo. Plus A mathematical 'plus' symbol. Duration An icon indicating Time. Success Tick An icon of a green tick. Success Tick Timeout An icon of a greyed out success tick. Loading Spinner An icon of a loading spinner. Facebook Messenger An icon of the facebook messenger app logo. Facebook An icon of a facebook f logo. Facebook Messenger An icon of the Twitter app logo. LinkedIn An icon of the LinkedIn logo. WhatsApp Messenger An icon of the Whatsapp messenger app logo. Email An icon of an mail envelope. Copy link A decentered black square over a white square.

Aberdeen business owners warn new firms won’t move to Union Street without business rates relief

It comes just days after the shock closure of Aberdeen food hall Haigs and a fundraiser launched to save city centre cafe and vinyl store, Red Robin Records.

Rural Affairs Secretary Mairi Gougeon meets with, from left to right, Findlay Leask, managing director of Caber Coffee, Allan Henderson, director of McGinty's Group, and Adrian Watson, chief executive of Aberdeen Inspired. Image: Kenny Elrick/DC Thomson.
Rural Affairs Secretary Mairi Gougeon meets with, from left to right, Findlay Leask, managing director of Caber Coffee, Allan Henderson, director of McGinty's Group, and Adrian Watson, chief executive of Aberdeen Inspired. Image: Kenny Elrick/DC Thomson.

Aberdeen city centre business leaders are appealing to the SNP government to take action on business rates relief or risk the future regeneration of Union Street as popular venues close their doors.

SNP minister Mairi Gougeon heard the stark reality facing firms in the city centre during a visit to The Esslemont restaurant on the city’s granite mile.

She was there to unveil £5,000 of Scottish Government funding to expand Aberdeen Restaurant Week, which runs from January 22 to February 4.

Despite the optimism around the popular foodie fortnight, business leaders are keen to make a direct plea for support tackling crippling business rates.

Rural Affairs Secretary Mairi Gougeon hears from concerned business leaders. Image: Kenny Elrick/DC Thomson.

Findlay Leask, managing director of Aberdeen coffee supplier Caber Coffee, said if rates support is not offered, then new businesses won’t be attracted to move in to the city.

It comes just days after the shock closure of Aberdeen food hall Haigs and a fundraiser launched to save city centre cafe and vinyl store, Red Robin Records.

Mr Leask said: “Rates is a huge issue that needs to be addressed.

“Without addressing that, where is the incentive for new businesses to come in to the city centre? It’s all about diversity.

“We’ve seen this week there are two businesses of great diversity elected to close, or look to be closing. And if we can’t address the rates issue, we won’t attract new businesses, we won’t attract new life into the city centre, and that’s concerning.”

What do business leaders want?

City centre business leaders want to see the Scottish Government introduce a 75% rates relief like that extended in England as part of the autumn statement.

However, Finance Secretary Shona Robison failed to replicate the scheme for mainland Scottish hospitality businesses when setting out her budget last month.

Those on the islands will be given 100% relief and Ms Robison announced a freeze to rates for premises valued at less than £51,000.

Allan Henderson, founding director of The McGinty’s Group, which runs some of the city’s most popular pubs and restaurants, said the relief must be matched.

He said money was available to government but not passed on.

From left to right, Findlay Leask, managing director of Caber Coffee, Allan Henderson, founding director of The McGinty’s Group, Rural Affairs Secretary Mairi Gougeon and Aberdeen Inspired chief executive, Adrian Watson. Image: Kenny Elrick/DC Thomson

“If it’s doable in England and the Westminster government has passed that on to us then that argument doesn’t hold for me,” he said.

“What’s clearly apparent is that the Scottish Government has no time for the hospitality industry in Scotland.”

Business rates support is an issue that is raised by “many city businesses day in and day out”, echoed Adrian Watson, chief executive of Aberdeen Inspired.

We revealed new figures last month that show 96 properties on Union Street have sat empty at some point during this financial year so far, including 64 offices and 26 shops.

‘Really concerning’

In a sit-down with the P&J, Ms Gougeon, who is Rural Affairs Secretary, agreed it is a “really concerning time” for the hospitality sector.

On the rates relief ask, she said: “We’re facing one of the worst budget settlements that we’ve ever seen in Scotland.

“We’ve had a real terms decrease and if we were to replicate the rates relief that’s been seen down south in Scotland that would mean quite bluntly that we wouldn’t have the same money to invest in our NHS and schools, in our emergency services as well.”

Rural Affairs Secretary Mairi Gougeon speaks to the P&J. Image: Kenny Elrick/DC Thomson.

She emphasised the support that has been available through freezing business rates for properties under £51,000 and the small business bonus scheme which allows around 100,000 businesses to avoid paying any rates.

And the SNP minister said the Scottish Hospitality Group will be meeting with Ms Robison to put their concerns to her directly.

Ms Gougeon said: “She announced the budget on December 19 but it’s still to work its way through parliament and go through that scrutiny process.

“There could well be changes along the way but I think it’s really important that these discussions are had so we can fully appreciate and understand the concerns that businesses are experiencing.

‘The city centre is not broken’

Despite the concerns, there does remain optimism amongst business leaders who are working hard on breathing new life into the city centre.

Mr Leask said: “The city centre is not broken. It can come back. It needs the correct decisions to be made because we need to have not just footfall of people coming in from suburbs or the shire, the city needs people in the heart of it.”

And Mr Henderson, who is behind the plans for Aberdeen’s new indoor food market, said: “There is absolutely no doubt that Aberdeen city centre has been down on its heels. But there is some positive things happening.

“The work that Aberdeen Inspired do and Our Union Street are trying to do to reinvigorate Union Street will come to fruition.

“What you’re also seeing is that some of the rentals are coming down in the city centre so basic economics mean that some of the units will fill up.”

Conversation