Stop burdening us with onerous rates, business bosses tell SNP
sCots businesses have issued a plea to ministers calling for a dramatic overhaul of the controversial rates system.
It came as research found small firms face a higher burden than larger companies.
the long-awaited Barclay review will today publish a list of recommendations following a row over a revaluation of nondomestic rates earlier this year which saw thousands of firms face rises of up to 400 per cent.
nearly 20,000 companies have already lodged appeals against soaring rates; now firms and organisations are demanding the scottish Government order a revamp of the system.
they claim that it ‘fails to keep pace’ with the changing trading conditions and economy.
according to a new report, smaller shops, hotels and pubs face a proportionately heavier burden than others in relation to profits.
the research, published by the scottish Parliament Information Centre, states: ‘there is a significant variation of rates as a share of operating surplus across different sectors.’
It claims that non-domestic rates ‘as a share of operating surplus are significantly higher’ in accommodation and food services – particularly when compared with construction and manufacturing.
Following an outcry from the hospitality sector at the time of the revaluation, Finance secretary Derek Mackay introduced a cap on rate increases, which then rose with inflation, for a year. Despite this, thousands of pubs, restaurants and hotels
‘Review must lead to urgent action’
have appealed their new rates – and there is no guarantee from Mr Mackay that the cap will be extended.
the Barclay review, led by former RBs chief Ken Barclay, will be published today following a delay. Yesterday, David Lonsdale, of the scottish Retail Consortium, said: ‘the overall rates burden is too onerous, and the system itself fails to keep pace either with trading conditions or with wider structural changes in the economy.’
He added that the review must lead to ‘urgent action’ from Mr Mackay to ‘recast business rates for the decade ahead’.
scottish Conservative economy spokesman Dean Lockhart said: ‘the analysis showing smaller firms facing stifling business rates penalties is extremely worrying. we need to see from the Barclay review a real change which will ensure we never see a repeat of the mess earlier this year. If the business rates framework isn’t right, companies of all sizes can face unfair increases that could send them out of business.’
scottish Labour economy spokesman Jackie Baillie said: ‘at a time when scotland’s economy is fragile and business confidence is shaky, businesses need support from this nationalist Government – not astronomic tax bills.’
a scottish Government spokesman said: ‘the scottish Government awaits the publication of the Barclay review on august 22 and will respond swiftly.’