Now 11,400 f irms appeal against SNP rates rises

MORE than 11,000 companies have already lodged appeals against increases in their business rates bill.

Official figures show that, at the end of June, 11,368 appeals had been lodged against bills for properties with a total rateable value of £911million.

And the number of appeals is expected to soar significantly – as firms still have one month to challenge eye-watering increases imposed earlier this year.

Businesses last night hit out at the Scottish Government for hitting them with increases they can’t afford to pay. They also criticised the time they will need to wait until the backlog is tackled by assessors.

Earlier this year, Finance Secretary Derek Mackay stepped in at the last minute to provide a one-year rescue package for some of the firms hit hardest by a revaluation of commercial property prices.

But many of the same firms who were helped in April are facing increases in their rates from next year – which is likely to result in more appeals.

Carolyn Caddick, economy spokesman for the Scottish Liberal Democrats, said: ‘The SNP Government has clearly not gone far enough in shielding new and upcoming businesses from dramatic rates rises.

‘Businesses have appealed against almost £1billion worth of business rates. With another month to go before the deadline for submitting appeals, businesses will be looking closely at their bills and the value of these challenges seems set to rise.

‘Businesses across the country have been faced with gigantic rate increases this year that is putting their growth and jobs at risk.’

It can take years for an appeals process to be completed. But businesses need to continue to pay rates while they wait for the conclusion of the process.

Of the 11,368 cases lodged since April following the 2017 revaluation, only 27 have been resolved.

Donald MacLeod, who owns the Garage nightclub in Glasgow, has appealed a 91 per cent increase in his firm’s rateable value – which would add £100,000 to his annual bill. He said: ‘These figures are very worrying.

‘This is exactly what we expected to happen and I suspect this is the lower end of the wedge – there are a lot more appeals to come.

‘These appeals relate to nearly £1billion in rateable value, which is the cost of the new Queensferry Crossing. But what I wonder is how many businesses will be crossing into administration because of this.

‘We’ve been warning for years that this would be the case. The rateable value system is a complete mess and this level of appeals is no good for anybody. It is something which could have been fixed a long time before now, then these appeals wouldn’t have been needed.

‘How many assessors will be needed if, as expected, the rate of appeals continues to accelerate? And it is clear why the rate of appeals is so high – it’s because rates are so high.’

A Scottish Government spokesman said: ‘It is right that all businesses can appeal their revaluation, which are set by independent assessors appointed by local government. The Scottish Government is maintaining competitive business rates, including funding around £660million of rates relief this year.’

‘The rateable value system is a mess’