£600m to support our businesses
STARTING from April 1, 100,000 small business properties will pay no business rates at all.
That’s almost half of all business properties in Scotland. In total, seven out of 10 businesses will pay the same or less next year than they are paying this year in rates.
That’s the best package of support for small business in the UK – and it’s more important this year as an independent revaluation of business rates is under way.
Any rates revaluation means some lose and some gain. To help businesses through that change, we’re exempting more small businesses completely and reducing the tax rate – what’s called the poundage – for those that do pay.
So even when a firm’s rateable value is going up, in some cases the amount of tax they pay could go down.
We’ve restricted the higher tax rate to the largest businesses, helping 8000 firms save on their costs.
In total, that’s a £600million package of support to help local businesses through what are challenging times.
We’re also listening to those who are seeing the value of their property and their rates bill rise.
We’re working with local authorities in the north-east, for example, to identify ways to help businesses hit by the downturn in oil and gas. And we have ensured that anyone who wants to appeal their new rateable value can do so for free.
Later this week, Finance Secretary Derek Mackay and Economy Secretary Keith Brown will be meeting the hotels and hospitality sector, who have been particularly affected by the changes, to hear their views.
I appreciate times are tough for business and any rates revaluation will cause concern for some but I want to reassure firms that my door is always open to new ways we can help.