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North-east firms hit with £7million SNP tax grab despite oil industry woes

Alexander Burnett. Picture by Kenny Elrick
Alexander Burnett. Picture by Kenny Elrick

Businesses across the north-east have been hit with a £7million SNP tax grab – despite the local economy reeling from the North Sea crisis and prospect of Brexit.

Thousands of premises in Aberdeen and Aberdeenshire have been hammered by the doubling of the large business rate supplement.

Despite the desperate situation in the north-east economy, new figures show 2,300 properties will be affected by the tax raid in the Granite City alone, with businesses being forced to cough up an estimated £5million.

In Aberdeenshire, more than 1,100 premises will be affected, costing firms an estimated £2.1million.

The “punitive” tax hike – which will affect sites including shops, offices, factories and hotels – comes after the Scottish Government announced it would double the large business rate supplement to 2.6p in the pound.

It comes as the north-east economy continues to suffer from the oil price downturn, as well as widespread uncertainty following the vote to leave the EU.

Conservative MSP Alexander Burnett said the revelation “makes a mockery” of SNP claims they are “pro-business”.

A spokesman for the Scottish Government said they had “a strong record” of boosting the north-east economy.

But Aberdeenshire West MSP Mr Burnett said: “This is nothing short of a tax raid from the SNP to boost the public purse and it is coming at the worst possible time for our local economy.

“It makes a mockery of what Nicola Sturgeon said during the Holyrood election about the SNP being pro-business.

“She also claimed that this policy is only affecting large corporations – but that is clearly not the case.

“Many of these companies are small and medium sized operations or businesses which can have tight profit margins such as rural hotels.

“At difficult economic times such as these, government should be working to support the local economy.

“Instead, the SNP introduce punitive tax rises. It is completely the wrong approach.”

During the Holyrood election campaign, five industry groups, including the Scottish Chambers of Commerce, attacked the decision to raise the large business rate supplement.

But a Scottish Government spokesman said they had invested heavily in the north-east economy, pointing to major infrastructure investment in the region and the recently signed city deal.

He added: “We are maintaining a competitive advantage across Scotland for the majority of business rate-payers.

“The austerity budget handed to Scotland by the UK Government has meant that those paying the large business supplement have an increase of 3.4% to their rates bill, helping to fund local services that support economic development.

“The Small Business Bonus Scheme means zero or reduced rates bills for around 100,000 properties, and will be further expanded in 2017.”