Now 1 in 3 firms fight rates hikes

ALMOST one in three Scottish firms have lodged appeals against business rate bills totalling more than £5billion, new figures show.

More than 67,000 companies have challenged their nondomestic rates following the first revaluation since 2010.

It saw businesses face rises of up to 400 per cent – with fears they would be forced to cut back on spending, lay off staff or even close.

Despite a one-year rates cap for some, including bars, hotels, restaurants and cafes, many have appealed amid concerns they could face soaring bills from April.

A report published by the Scottish Government yesterday shows that 67,519 firms had appealed by the September 30 deadline – 29 per cent of companies north of the Border.

This equates to £5billion in rateable value of property – 68 per cent of the total of Scottish businesses. This indicates that many of the appeals are from bigger businesses and firms which own large property holdings – including hotels.

Of the £5billion worth of appeals, just over £1billion has so far been resolved, with assessors given three years to process and come to a decision on each case. Previously, fears were raised some firms may be forced to wait years to find out the outcome of their appeals due to the massive number of appeals expected.

Scottish Tory finance spokesman Murdo Fraser said: ‘The fact £5billion worth of appeals have gone in really exposes the severity of this situation. These are companies who could very well go to the wall unless this is sorted out quickly.’

The document also revealed that due to huge numbers of appeals

‘Could very well go to the wall’

submitted in 2010 at the last revaluation assessors have yet to make decisions on 325 applications.

Earlier this year Mr Fraser, along with business bosses across Scotland, called for a radical overhaul of the nondomestic rate system. However, this was rejected by the Barclay Review.

Now Mr Fraser is calling on Finance Secretary Derek Mackay to follow Chancellor Philip Hammond’s lead by easing the pressure on firms by changing the way rate rises are calculated.

In his Budget, Mr Hammond disclosed that this will now be based on the lower Consumer Price Index inflation measure rather than the Retail Price Index – so rates will rise by 3 per cent next April instead of 4 per cent.

A Scottish Government spokesman said: ‘Valuations for business properties are set independently by Scottish assessors and appealing… is the correct course of action for any ratepayer who disagrees with the assessor’s independent valuation of their property.

‘Those appeals will now be heard through independent legal processes and any ratepayer has the opportunity to request an expedited hearing.’