Local businesses need more support

Local businesses play a vital role in sustaining towns and communities in Airdrie, Coatbridge and throughout Scotland.

These shops, pubs, amenities, cafes and restaurants not only enjoy our custom due to the convenient and personal service they offer, but they are also a major source of essential local employment.

Self-evidently these businesses should be supported and given every encouragement to ensure they survive.

So, it defies belief that the Scottish Government should bring forward proposals to increase business rates, or ‘non-domestic rates’ as they’re officially called, to a level where the viability of these and other local businesses is put in doubt.

Many are reporting that if they are to keep their head above water then inevitably they will have to lay off staff. This, in turn, has a knock-on effect on the local economy.

The business rate hikes, some of which were up to 80 and 100 per cent, are all the more unsustainable coming as they do against the background of the already inflated business rates in Scotland, set before the 2008 crash.

Furthermore, an additional increase in rates is a double whammy for pubs and hotels because business rates are linked to the costs of BT internet and Sky TV, which increase when business rates go up but are crucial for attracting customers.

This comes against a background of businesses in the hospitality sector having had to cope with first the smoking ban and then the lowering of the drink-driving limit and the resultant reduction in patronage.

Following representations from local businesses across Scotland when the Scottish Government’s Cabinet Secretary for Finance announced the increase in rates in the 2017/18 Budget, the Scottish Conservatives mounted a vigorous campaign condemning the new rates and calling for an urgent re-think and review of these punitive increases.

This campaign, together with vocal criticism from the Scottish Tourism Alliance and threats from businesses that they simply wouldn’t and couldn’t pay the new rates, has led to the Scottish Government’s recently announced U-turn.

This, in turn, means that at least some of these increases, for example in the pub and hotel industry, will be capped at 12.5 per cent – but this will only affect 48 businesses in North Lanarkshire, with more than 2500 still seeing increasing rates and no relief even after this concession.

Less encouraging, however, is the confirmation, drawn with some difficulty from the Cabinet Secretary, that this cap will only be in place for one year!

In these circumstances it is difficult not to conclude that this is a sticking plaster solution at best.

A more sustainable and long-term re-think on business rates is clearly essential if local businesses are to remain a vibrant part of our communities.

Finally, it was a great sadness to be notified that Airdrie Savings Bank is to close.

The bank has been major part of Airdrie’s history for 180 years.

As a child I had one of the silver coloured ASB ‘piggy-banks’ issued to pupils which took thruppences, sixpences and half-crowns (clearly I was a predecimalisation child!)

This independent bank has operated on the best principles of banking with a savings scheme for schoolchildren instilling the importance of saving from a young age and buying when you could afford it.

This approach contrasts sharply with the current age of instant gratification, buy now worry about paying later.

Proof positive change is not always for the better.

A re-think on business rates is essential if local businesses are to remain vibrant

Sad loss The closure of Airdrie Savings Banks is a blow to the community