Bank chief sits on the fence over review of rates rises

THE banking boss carrying out a business rates review has admitted it is too soon to say if his plans amount to ‘tinkering around the edges’.

Ken Barclay, the former RBS chairman, was put on the spot by Tory MSP Graham Simpson over his study for the Scottish Government.

Mr Barclay was asked at a meeting of Holyrood’s local government committee yesterday if he proposed a shake-up of the system.

He replied: ‘It is too early to say whether it is – as you describe it – tinkering around the edges or a complete redesign.’

Mr Barclay is due to report his findings within months, after an outcry over revaluations that left many firms facing large increases in their bills.

Faced with a rebellion from firms refusing to pay, Finance

‘System unfit for digital economy’

Secretary Derek Mackay announced in February that he would cap increases for the hospitality industry and firms in the North-East at 12.5 per cent, which was later increased to 14.75 per cent.

But he guaranteed the cap for only one year – saying the Barclay review would provide recommendations for dealing with the problem in the longer-term.

During yesterday’s meeting, council umbrella group Cosla called for local authorities to get full control over rates.

But Scottish Retail Consortium director David Lonsdale said: ‘We believe this would be a retrograde step.

‘The reality is the current rates system is not fit for the modern digital economy and needs significant reform to make it fit for the future.’