Business rate appeals may spell ruin for small firms
THOUSANDS of Scottish firms have lodged appeals against swingeing business rate rises amid fears of damaging delays.
Figures obtained by the Scottish Daily Mail reveal nearly 20,000 firms across the country have appealed and the figure is expected to increase ‘significantly’.
And with a growing backlog, there are fears of long delays that could force companies to pay off staff, push up prices or even go out of business.
The problem stems from the first revaluation of commercial property since 2010, which has led to thousands of businesses across Scotland facing a hike in rates of up to 400 per cent.
An outcry followed the revelation that pubs, hotels, shops, nurseries, restaurants and cafés would face rate rises. Finance Secretary Derek Mackay had to make an embarrassing intervention to cap rises for some sectors for a year.
But for businesses to have their rates reduced until the next revaluation in five years’ time they must lodge an appeal by September 30.
The assessors will then have three years to process all of the requests, leading to fears that meanwhile some businesses could have to pay the new higher rates for a long period.
Scottish Conservative finance spokesman Murdo Fraser said businesses in sectors such as hospitality were warning that huge increases could drive them to the wall. He added: ‘The SNP needs to find a lasting solution to the rates issue if we are not to see permanent damage to our economy.’
So far, assessors in the Grampian region have received 5,236
‘It may be too late for some’
appeals, with 3,672 lodged in the Lothians, 2,002 in Tayside and around 2,000 in Glasgow.
There are 1,251 appeals from Central Scotland, 1,104 from Dunbartonshire and Argyll and Bute, 866 from the Highland Council area and 690 from Fife.
Last month, this newspaper revealed the Barclay review of rates, led by former RBS chief Ken Barclay, had been delayed.
Scottish Retail Consortium spokesman Ewan MacDonald Russell said: ‘It’s crucial the Barclay Review recommends more regular revaluations.’
Experts have warned a surge in appeals could see delays in the process, with firms forced to pay the new higher rate before a decision is made on whether they have been successful or not. While any reduction will be backdated, Gary Walton of businessratesadvice.com says it may be ‘too late for some, who will run into cash-flow problems and go to the wall’.
Scottish Labour economy spokesman Jackie Baillie said: ‘For too long the SNP simply refused to listen to firms who were crying out for support.’
A Scottish Government spokesman said: ‘The Government has committed around £660million of business rates relief this year. Any business concerned about its valuation should contact the local assessor.’