Firms’ bills cut by £14m in business rates fiasco

MORE than 500 companies have had more than £14million slashed from their rates bills following shock hikes which threatened redundancies and business closures across Scotland.

More than 73,000 firms had challenged assessors on rises of up to 400 per cent following the first revaluation of non-domestic rates in seven years in 2017.

Finance Secretary Derek Mackay was forced to step in and cap rises for thousands of firms – but many also lodged appeals over fears that the relief would be lifted.

Mr Mackay has kept the cap for next year, but there is no guarantee of how long it will be in place. He has also pledged to make changes to the business rates system such as changing the way fees are calculated and how often revaluations are carried out.

Yesterday, the Scottish Government published updated figures on the number of appeals lodged and dealt with so far.

It shows that 73,577 businesses lodged appeals following last year’s revaluation, which ‘represents 32 per cent of all properties on the valuation roll’ in Scotland.

There were nearly 10,000 more appeals in the most recent revaluation compared to 2010.

The report shows that 528 appeals were successful with those firms having a collective £14million slashed from their rates bills.

Last year, it was revealed that thousands of companies across Scotland faced having to make staff redundant, put off necessary work or expansion or face closure over soaring business rates.

The revaluation left some firms facing rate hikes of up to 400 per cent and the SNP faced fierce criticism over ministers’ initial refusal to step in and help.

However, Mr Mackay was forced to make an embarrassing U-turn and offered a 12.5 per cent cap for those industries worst hit with pubs, cafes, hotels and restaurants handed a lifeline.

Business owners were, however, still encouraged to appeal their rates over fears that the cap would be lifted.

The latest update on appeals show that 73,049 businesses are still waiting to hear from assessors over appeals lodged last year – while more than 200 have yet to find out about reviews from 2010.

Scottish Retail Consortium director David Lonsdale said: ‘Given the sheer length of time since the previous rates revaluation – and enormous fluctuations in rateable values during that period – it is not surprising there has been a sizeable volume of appeals.

‘What is important is that these are dealt with promptly, and if firms win their appeal that the monies owed to them are returned quickly.

‘Despite some welcome reforms being in the pipeline the fact remains that the rates burden remains onerous.

‘Burgeoning government-inspired costs – including the apprenticeship levy, national living wage and statutory employer pension contributions – are a significant challenge for retailers, especially at a time when consumer spending is seeing meagre growth at best.’

‘Monies returned quickly’