Nurseries voice fears over rates relief proposal

Two Rutherglen nurseries have raised concerns about an attempt to end rates reliefs schemes that benefit 4450 businesses in South Lanarkshire.

MSPs recently voted for an amendment to the Non-Domestic Rates Bill that will remove the ability of Scottish Ministers to set the business rates poundage.

This means rates would no longer be set nationally and business rates reliefs – including the small business bonus for nurseries – would end.

Businesses in South Lanarkshire would lose £12.1 million of relief under the plan – which equates to roughly £2700 per eligible business.

Burnside and ACE Place nurseries have joined forces with Rutherglan MSP Clare Haughey, who called the move“disastrous”.

She said:“Businesses need an escape from Brexit – not more uncertainty and unnecessary cost.

“The Scottish Government offers the most generous package of business rates reliefs anywhere in the UK, yet astoundingly, Tory and

Labour MSPs seem happy to scrap some of it.

The small business bonus scheme, day nursery relief, renewable energy relief and new fibre relief are all impacted by this amendment – how can opposition parties possibly justify voting to remove all this?”

Alison Harkin, director of ACE Place Nursery added:“The Day Nursery relief has been vital.

“From the money saved, we have been able to invest in our staff and become a Real Living Wage employer. This has been a great step forward for us and we would struggle to continue with annual increases without the benefit of rates relief.

“At a time of transformational change within the childcare sector the reversal of this relief would present considerable challenge, therefore I would be weary of any moves to restrict business rates relief.”

After the Bill’s consideration by the Local Government committee, it will be debated in the Scottish Parliament.