Scottish Daily Mail

ACT NOW BEFORE OUR FIRMS GO OUT OF BUSINESS

- by Murdo Fraser SCOTTISH CONSERVATI­VE FINANCE SPOKESMAN

NICK Fletcher is the kind of person who keeps Scotland ticking over. Taking a gamble, he decided not so long ago to throw his savings into buying the lease on the Argyll Hotel – a beautiful eightbedro­om property on the Kintyre peninsula.

Running a business in a remote area is tough. It requires staying power and persistenc­e. The hotel was run-down but Nick and his team revitalise­d it and now employ seven local people – a significan­t number in a place that has for too long suffered from chronic depopulati­on.

Yet that success story is under threat. The hotel was revalued as part of the five-yearly assessment of all commercial properties in Scotland. Staggering­ly, annual rates are to rise from £2,891 to £12,675.

‘The Scottish Government needs to step up to the plate now and acknowledg­e that there is something wrong when a small business like ours which is only three years old is facing a hike of 338 per cent in what we pay,’ Mr Fletcher said this week. ‘Something that, unfortunat­ely, is likely to break the back of our business and, I suspect, many other small rural hotels.’

His story could be repeated by the owners of hotels, pubs and many other businesses across Scotland. Many are discoverin­g to their horror the impact of massive rate rises, due for payment on April 1.

They include Stewart Spence, the owner of the Marcliffe Hotel in Aberdeen, a friend of Alex Salmond and a long-time SNP supporter.

Yesterday, he laid the blame directly at their door, saying: ‘Unfortunat­ely we don’t have any businessme­n in the Government.

‘The Finance Minister isn’t interested in speaking to anyone. Derek [Mackay] has been allowed to go and make these decisions without consultati­on.’

Trade body Scottish Renewables claimed last week that at least one energy firm was facing an astonishin­g 650 per cent rate rise in April.

As Martin Foster, chairman of one small company, Alba Energy, said this week: ‘The Scottish Government has facilitate­d a rates regime that will cripple the independen­t hydro industry it once claimed to support.’

The impression left from this sorry saga is one that is becoming increasing­ly familiar to observers of Nicola Sturgeon’s SNP Government.

Obsessed by independen­ce, focused only on using Brexit to further their narrow political objectives, a crisis is allowed to develop, with the minister responsibl­e asleep at the wheel, waking up only to pin the blame on somebody else.

It happened with our education system. Now it is about to ruin the business opportunit­ies for hundreds of firms.

It was all so predictabl­e. Last year, the British Hospitalit­y Associatio­n wrote to Mr Mackay to warn about the ‘potentiall­y severe impact’ of the revaluatio­n. More recently, at First Minister’s Questions, Ruth Davidson has twice raised the matter with Miss Sturgeon, embarrassi­ng her over the impact the changes are having.

Yet the response has been the same. We didn’t carry out the revaluatio­n. It’s not our fault.

It won’t wash. Imagine the revaluatio­n had been a UK Government responsibi­lity. Furious letters would have been sent to Theresa May. Demands for urgent meetings with UK ministers and warnings of grave consequenc­es would be issued. Yet the buck stops with Mr Mackay.

The business rates system is under SNP control. Firms which have complained to assessors have been told they have to act ‘within the parameters of the legislatio­n we operate under’ – legislatio­n set by the SNP.

IT is the SNP – not assessors – which has overseen the business rate regime for the past ten years. It is the SNP, not local authoritie­s, which failed to put in place adequate reforms and failed to see a crisis coming, despite warnings.

Ministers say a review is forthcomin­g. Meanwhile, firms can appeal. That will hardly be of comfort to those who will be out of business by the time a new system is in place, or appeals heard. Nor is it acceptable. After a decade in power, the Nationalis­ts’ message is that they need more time to fix things. Haven’t they had enough?

This inaction tells us something fundamenta­l about government under Miss Sturgeon. I have criticisms of Alex Salmond’s regime, but there was a general acceptance that he understood the rules of economics and need to go for growth.

Under his successor, that basic understand­ing is lacking. The SNP has decided to increase the large business supplement for 22,000 firms in Scotland, to twice the rate seen in England. It also plans to make Scotland the highest taxed part of the UK.

Miss Sturgeon’s Government does not see business as the lifeblood of our communitie­s. Instead, business is a cashpoint, from which funds can be extracted at any opportunit­y.

Nobody seems to comprehend that if businesses are squeezed too hard, they may collapse.

The SNP must now act. A statement in parliament next week is necessary. The least Mr Mackay should do is follow the calls of trade bodies and instigate an urgent review of this revaluatio­n. He must no longer hide behind flimsy excuses that this is all somebody else’s fault. It is time for action.

This Government next year has an extra £500million to spend, thanks to extra funding coming on stream from the UK Government. This Government which, despite pleading austerity, found nearly £200million two weeks ago to stitch up a Budgetsavi­ng deal with the Scottish Green Party.

It is a Government which effortless­ly finds the cash for its pet projects, from baby boxes to free tuition, so long as there is a decent PR opportunit­y.

Most of all, it is a Government which now must act to rectify ten years of inaction and inertia – and support firms which are keeping the country alive.

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