...while shopping centres face a hefty rates blow

OUT-of-town supermarkets, shopping malls and retail parks will face soaring tax bills under plans to revive town centres, it emerged yesterday.

The Scottish Government has set out proposals which could see shops outwith city and town centres forced to pay additional business rates.

The move was disclosed in a consultation outlining plans to overhaul Scotland’s non-domestic rates system.

Ministers have committed to implementing a pilot scheme in several areas north of the Border following the Barclay Review recommendation last year. This called for councils to be given discretionary power to apply ‘modest’ rate supplements in certain circumstances for ‘outof-town ratepayers or predominantly online ratepayers’.

The proceeds ‘would be used to support rates payers in town centres’ in an attempt to revive high streets.

Finance Secretary Derek Mackay confirmed the Government will implement the changes, with three local councils set to launch pilot schemes. But David Lonsdale, director of the Scottish Retail Consortium, said: ‘The prospect of an additional business rates levy on firms located out of town and which operate online is alarming.

‘Despite the Barclay reforms, the overall rates burden remains onerous.

‘Over and above the headline poundage rate, many retailers also already pay the large firms’ business rates supplement and often a Business Improvement District levy on top.

‘The new business rates surcharge is at odds with the Scottish Government’s ambition of delivering a competitive rates regime, and introduces a fresh element of unpredictability into the system.’

Mr Lonsdale added: ‘It will do little to aid town centres since it is not an answer to the high costs of operating on our high streets. The Finance Secretary should firmly knock this new tax on the head.’

According to the Government’s Annual Business Statistics, the total tax burden facing the retail sector grew by nearly 30 per cent, to £579million, over the nine years to 2016.