Million pound rates hike for FVR hospital
Business rates for Forth Valley Royal Hospital have gone up by more than £1 million.
The annual levy will next financial year cost NHS Forth Valley £3,714,600 compared with the current bill of £2,570,400.
Revaluation is pushing up business rates across Scotland from the beginning of April and the changes apply to medical facilities as well as firms and shops.
Forth Valley Royal has for business rates assessment purposes had its rateable value increased from £5,040,000 to £7,550,000
Scottish Conservatives this week called on the Scottish Government to reconsider its business rates plans and mitigate their impact on the NHS.
Scottish Conservative MSP for Mid Scotland and Fife Dean Lockhart said: “The business rates for Forth Valley Hospital will be alarming for both hospital managers and patients.
“It seems that not only commercial businesses are being hit in the pocket, hospitals too can’t escape these unfair extra charges.
“The SNP can’t expect the hospital to provide the best service for patients while being the victim of these extra charges.”
In response to a consultation on the changes, the heads of all 22 health boards in Scotland estimated in a memo to NHS Scotland they faced an extra bill of between £20 million a year and £30 million per annum.
The memo warned that NHS Scotland faced rising business rates compared with the health service in England and Wales where some authorities may see a reduction in rates liability.
A Scottish Government spokesman said individual business ratepayers, including NHS boards, could appeal their valuation, via independent processes, if they felt it was incorrect.
She added: “The NHS has worked closely with Scottish Assessors Association (SAA) to understand the impact of the Rating Revaluation 2017 and this has been factored into the financial plans of all NHS Boards. NHS funding is at record high levels and the health resource budget will increase by almost £2 billion by the end of this Parliament. From that increase, NHS Boards will manage the impact of these changes.”
A spokesman for NHS Forth Valley said: “We were aware of the planned increase in business rates and the additional costs have been factored into our financial plans for 2017-18.”